Learning Outcome 9.3: Develop a Marketing Mix for a Product and Service of Choice and Provide a USP Analysis for Each
Learning Outcome 9.3 focuses on the development of a marketing mix tailored to both a product and a service.
It also emphasizes the importance of performing a Unique Selling Point (USP) analysis for each of these.
Unique Selling Point Analysis
A Unique Selling Point Analysis (USP) is a tool that helps businesses identify and emphasize the unique benefits and features they offer to consumers that competitors do not provide as well.
The USP is crucial for differentiating products and services in the marketplace.
Components of USP Analysis
What they do well:
Companies need to evaluate their strengths through analysis and customer feedback.
What the customer wants:
This involves conducting market research using tools such as sales data and surveys to understand customer needs.
What their competition does well:
Businesses should analyze their competitors through various means including surveys, online discussions, user boards, and ratings to understand their strengths.
Companies should align their marketing mix to focus on the unique features and benefits that their target market desires, which are not provided by competitors.
Example: Netflix vs Disney+
Netflix USP Analysis
What Netflix does well:
Offers a strong global slate of original content encompassing diverse genres and cultures, e.g., Squid Game, The Crown, Stranger Things.
Implements a binge-watching model by releasing entire seasons at once, appealing to viewer habits.
Features a sophisticated recommendation algorithm that personalizes the user experience.
Provides broad content appeal for demographic groups such as teens and adults, as opposed to just family-focused entertainment.
Marketing Focus: Netflix should emphasize these features in its marketing strategies.
Common Features (Netflix + Disney+)
High-definition and 4K streaming across multiple devices.
Offline downloads for mobile viewing.
Support for multiple user profiles and parental controls.
Compatibility with mobile devices and Smart TVs.
Consideration: While these features are important for target customers, they do not significantly differentiate Netflix from Disney+.
Disney+ USP Analysis
What Disney+ does well:
Provides exclusive access to iconic franchises such as Marvel, Star Wars, and Pixar.
Strong appeal to families with young children due to recognizable characters and safe content.
Competitive advantage with a lower entry price point in certain markets.
Caution: Businesses, including Disney+, are advised against prominently marketing these features as they don't serve as unique differentiators.
Learning Outcome 9.4: Evaluate and Suggest Ways of Improving an Existing Marketing Mix
In addressing improvements to an existing marketing mix, individuals must not only identify which element to change but also thoroughly explain why this change would be beneficial.
Considerations for suggested improvements include:
Inferencing from customer feedback, emerging trends, or competitor practices.
The need to link suggestions back to the target market and brand’s USP.
Improvement Suggestions for a Brand:
Show clear understanding of the target market by aligning with their needs or preferences.
Connect suggestions to current trends (e.g., high-protein products or sustainability) or effective practices of competitors.
Ensure suggestions are realistic & align with the brand’s image and resources.
Justify how the suggested improvements would boost sales, enhance customer loyalty, or strengthen brand reputation.
Evaluation of McDonald's Marketing Mix
Current Product Analysis:
Product line mainly consists of indulgent, high-calorie meals with limited options appealing to health-conscious customers.
Promotional Strategy:
Promotions primarily focus on value meals and family deals rather than nutritional trends.
Distribution (Place):
McDelivery and app platforms are robust but the menu lacks options catering to health-aware consumers.
Opportunity Identified:
Expanding the menu to include health-oriented meals could tap into the fitness-oriented market.
Proposed Improvements:
Product: Introduce the MacroChicken Wrap, featuring grilled chicken, added fiber, over 35g protein, and under 500 calories, to attract health-conscious customers.
Promotion: Execute targeted campaigns on platforms like Instagram featuring fitness influencers promoting the MacroChicken Wrap.
Packaging: Employ eco-friendly packaging labeled with clear nutritional information and QR codes linking to sourcing info, enhancing transparency and trust.
Learning Outcome 9.5: The Disruptive Impact of Digital Technology on Market Research and Marketing
The phrase disruptive impact refers to how digital technology alters traditional business operations and consumer interaction.
The effects of digital transformation can be both positive and negative, reshaping market dynamics.
Tools and Impacts:
Real-Time Feedback:
Utilizing online polls and social listening allows immediate feedback gathering.
Businesses can promptly react to trends and make agile decisions.
Big Data & AI Analysis:
AI analyzes extensive amounts of data from customer searches and behaviors, leading to accelerated and in-depth insights over traditional methods.
Affordability of Tools:
Platforms like Google Analytics provide low-cost access to valuable data, leveling the playing field between small and large businesses.
More Targeted Campaigns & Measurable Results:
Targeting: Platforms like TikTok and Google Ads facilitate precise targeting based on demographics and behavioral habits.
Performance Measurement: Digital marketing tools provide performance metrics that allow businesses to adapt campaigns based on real-time feedback.
Creative, Low-Cost Options:
Memes, influencer-generated content, and viral trends enable limited-budget marketing strategies.
Learning Outcome 9.6: Evaluate the Influence of Ethics and Sustainability on Marketing
Market Expectations:
There is a growing customer expectation for businesses to act honorably and sustainably, which influences product design and advertising language.
Positive Influences of Ethics & Sustainability:
Trust and Loyalty: Brands that embody ethical values, like Tony’s Chocolonely, cultivate customer loyalty.
Powerful Marketing Stories: Ethical actions provide strong content for marketing campaigns, e.g., SuperValu’s support of community initiatives.
Competitive Advantage: Eco-friendly initiatives distinguish brands in a crowded market.
Challenges of Ethics and Sustainability:
Increased Costs: Sustainable materials often increase operational costs, impacting profit.
Risk of Greenwashing: Companies overstating their eco-credentials without real commitments can lose customer trust.
Ensuring Authenticity: Authenticity is crucial; customers can identify insincerity, requiring businesses to genuinely align practices with marketing messages.
Learning Outcome 9.7: Power-Interest Grid for Customer Interest Analysis
The power-interest grid is a strategic tool used to analyze customer interest and influence, assisting businesses in adjusting their marketing mix according to stakeholder characteristics.
Steps in Using the Power-Interest Grid:
Segment customers based on their power and interest to determine how much effort and attention to allocate towards each group.
Stakeholder Segmentation:
HIGH POWER, LOW INTEREST: (Influencers, Health Professionals, Gym Owners)
Manage relationships by sharing brand stories and encouraging endorsements.
HIGH POWER, HIGH INTEREST: (Health-Conscious Young Adults)
Clearly communicate benefits on product packaging and utilize fitness influencers.
LOW POWER, LOW INTEREST: (General Public)
Less focus, may only offer products at a few general supermarkets.
LOW POWER, HIGH INTEREST: (Trend Followers, Students)
Implement interactive marketing strategies such as TikTok giveaways.
Learning Outcome 9.8: STEEPLE Analysis for External Environment Understanding
A STEEPLE analysis is utilized to uncover the significant external influences on a business, supporting improved planning and decision-making.
It helps to identify opportunities and threats in the market.
Components of STEEPLE Analysis:
Social Factors:
Changes in societal attitudes impact customer preferences, necessitating businesses to adapt.
Example: Fast food chains evolving their menus to include vegan options to attract health-conscious customers.
Technological Factors:
Adoption of new technologies is essential for maintaining competitive advantage.
Example: Retailers lacking mobile shopping options risk losing market share.
Economic Factors:
Changes in economic conditions (e.g., inflation) influence consumer spending behavior.
Environmental Factors:
Increased consumer demand for sustainability affects product offerings and operational practices.
Political Factors:
Government policies can influence supply chain management and costs.
Legal Factors:
Compliance with laws (e.g., GDPR) is vital to avoid penalties.
Ethical Factors:
Brands are held accountable for their ethical practices, influencing public perception.
Example Case Study: Solánna Skincare
Solánna Skincare confronted various external challenges and opportunities as an Irish exporter to the U.S.:
Political: Trade tariffs increased shipping costs.
Economic: Inflation and exchange rates impacted product pricing.
Technological: Adoption of AI for customer service enhanced operational efficiency.
Environmental: Launched eco-friendly refill options in response to environmental concerns.
Legal: Site updates to comply with U.S. data protection laws were necessary.
Ethical: Criticism for a culturally insensitive marketing campaign emphasized the importance of ethical considerations in marketing strategy.