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March 10, 2019 Critical Thinking

1. Market Research and its use in a marketing plan. This means sourcing an example that demonstrates the use of market/marketing research to determine marketing objectives, strategies or tactics.
In order to be a successful business, one must first understand the nature of the marketplace, including competitors, target markets and consumer needs. Having a marketing plan allows businesses to control their operations by solving problems more easily, identifying opportunities and threats, generating more ideas for future plans and understanding how to create and communicate offerings to consumers. This ensures that they are constantly in tune with societies changing trends, wants and needs, clients and partners. (Elliott, 2017, p. 79) An example of market research within a product is evident in Virtual Reality made by Sony for the Play Station 4 video game console as it successfully implements the strategies and objectives of the company. The market size is valued at 960.0 million USD in 2016 and is expected to grow rapidly by 2025. Virtual Reality and Facebook have invested $2 billion into 360-degree video technology in order to capture the interest of consumers. (Virtual Reality Market Size Growth & Analysis, 2017) As not everyone has 3D goggles within their household, Virtual Reality has found a different approach by marketing their product through accessible mediums such as the Console within a desktop and apps such as Facebook and YouTube. These formats allow the viewer to watch their screens come to life, feeling a part of the experience of Virtual Reality. Market research has been using Virtual Reality as a way to measure customer experience. Researches have brought virtual stores right to the consumers, so they can experience firsthand what the product is like. This also gives market researchers the capacity to analyse consumer habits such as branding, price, product placement and most importantly how consumers interact with products around the store. Ultimately, this research focused on consumers enables businesses to receive consumer information and feedback, thereby improving their products and services.
2. Who are the competition for your favourite product? This means sourcing an example that demonstrates the impact competition (an external factor) has on Page 4 of 6 your favourite product and thus influences marketing objectives and strategies.
For a business to be successful they must firstly focus on the consumer and be aware of opponents in order to become aware of any changes within the marketplace. This allows the business to make adjustments that will ultimately benefit the consumers, while also gaining a larger market share. Magnums new line of ice-cream known as the Crackable Tub is an innovation that has been through three years of development and research. This development has resulted in a product where each tub provides consumers with an “experience in every spoonful.” The new take home tubs have proved to be successful as a result of consumer-based loyalty. Competition for Magnum, such as popular brands Movenpick and Gelatissimo also offer take home tubs of ice cream with more flavour options. However, with Magnum ice cream, the consumer is paying for quality within the ingredients used. Therefore, the price of the product will be more expensive in comparison to a less high-end product. A comparison would be Magnum Crackable tub ice cream which is 440ml for $6.00 versus a Peters Original Vanilla 2L tub for $5.60. Peters is a popular brand among many consumers as the value is good although not a high-end product. Essentially, it is up to the consumer and their individual reasoning when determining whether to buy a certain product.
3. PESTEL and how this affects the introduction of a new product or service. This means sourcing an example of a new product or service first, and then explaining how each factor in PESTEL affects entry into the market.
A business must ensure they are aware of the impact of the macro environment. This can be achieved through a political, economic, social, technological, environmental and legislative analysis which ensures that the business is aware of factors that may affect their product or service. Nike Fly Leather mimics premium leather however is more sustainable in a world where climate change is beginning to impact decisions. Political changes affect how Nike produce goods and the amount of profit they make from an item. Political conflicts have the ability prevent imports and exports, thereby affecting their ability to sell products around the world.
A market collapse could lead to consumers switching to lower-end products as they are cheaper in comparison. This is Nikes downfall as the Nike Fly Leather is a high-end product. However, through this leather Nike believe that they are innovating a low-carb economy.
Social – Based on abrasion testing, Fly Leather shoes are lighter and five times stronger than typical leather shoes. These shoes have the ability to improve sports like football and basketball as sportspeople look for lighter, stronger shoes with performance engineered materials. In addition, sports stars have the ability to influence societies purchases to better the planet due to their level of social significance and public appeal.
Technological – Technology gives Nike the ability to innovate by interacting with consumers in order to design new products like the Nike Fly Leather. The use of social media allows Nike to build their brand and advertise this new form of leather. They then have the ability to use this valuable information regarding metrics to optimise their target market and production of this new innovative shoe to maximise their revenue.
Environmental – 50% recycled natural leather fibre with water power. The reason for this invention is because leather is the second highest environmental impact on emission and water usage. Fly Leather uses 90% less water and 80% lower carbon footprint than manufacturing traditional leather, with half the carbon footprint in comparison to other leather shoes. It has the ability to improve efficiency and create less waste, thereby presenting a sustainable environmental impact.
Legislative – Nike has its shoe reputation since the 70’s and just as any successful business it must follow legislative requirements. However, Nike have violated labour laws and contracts in the past. Therefore, China and Vietnam have developed regulations aimed at protecting working rights, ensuring better pay and improving working conditions. This means that the Flyleather will be a product with great quality and production.
4. SWOT analysis and its use in the marketing plan. This means sourcing an example that demonstrates how SWOT is used by a company to guide decisions related to the marketing mix or other elements of the marketing plan.
As many factors can affect a business, it is important that there is a distinct focus on developing and understanding opportunities within the market, threats for the future, strengths and weaknesses. SWOT analysis allows businesses to create a frame focused on maximising their strengths and minimising their weaknesses. This can be controlled within the industry (micro) as well as within the marketplace (macro). Through the use of a SWOT analysis Tesla can ensure they maintain their position within the global automotive market. However, to improve their probability they must address their competition while also investing in research and development to produce technologically advanced products within their market place. Internal strategic strengths within Tesla include their strong brand and control on their process of production alongside their sustainability of energy. Although it is a strong brand, weaknesses within the internal company include their limited market presence, supply chain and extreme pricing on vehicles which then limits growth within the business. Therefore, Tesla need to reform their strategies in order to grow and expand globally. This growth can be achieved by taking on external opportunities to improve performance, financial standings and competitiveness through global sale expansion, global supply chain expansion and business diversification. For example, by capitalising on areas of economic growth such as Asia, Tesla has the ability to expand their supply chain for the support of global expansion of production and sales operations. Although having shown considerable probability, the external threats have the ability to minimize opportunities and strengths as they propagate aggressive competition, fluctuations in material prices and dealership regulations. Therefore, must Tesla remain profitable amongst their competition.
5. Segmentation, targeting and positioning in marketing (STP): Current trends in the industry of your choice. This means first choosing an industry that you are familiar with or interested in. Source an example that describes a current trend in that industry. Explain how STP could be used to take advantage of the trend.
It is essential for a business to follow the STP framework within the marketplace as it aligns the product and purchaser, ensuring that the product is being sold to the right segment. Due to their technical innovation, minimalistic design and creative advertisements, Apple has become one of the most valuable and influential brands in the world. A recent product within apple known as Airpods works almost as an extension to the iPhone, having dominated the market for wireless headphones and emerging as a competition for Samsung. Consumer reaction towards apple Airpods was left with 98 percent satisfied customers, with the earphones targeting the high-end headphone market with the “Bluetooth-like” chip and low power technology. The core of Apple’s segmentation, targeting and positioning comes from their marketing efforts and is essential in the production of their brand. This multinational technology company represents itself as a premium brand and their products which include the Airpod are targeted to the segment which comprises of individuals who are willing to pay more for a product as it provides innovative services, advanced designs, functions and capabilities.
6. New product/services launches or brand management: A success and failure. This means sourcing 1 example of a new product/service success and 1 example of a new product/service failure; OR 1 example of successful management of a brand and 1 example of failed management of a brand. Whichever option chosen, you need to consider how internal and external factors may have impacted the success or failure.
Kendall Jenner, a TV reality star and model worked with Pepsi Cola to create a commercial which involved her and people of various backgrounds protesting on the streets. The model is seen leaving a photoshoot and handing a Pepsi to a police officer. The police and protesters begin to celebrate. The tactic of emotional marketing was used by Pepsi in order to target their audience. The elements within the ad were right and included the influence of a famous person, short storyline, diversity and current events as part of their protest. However, the execution was not. It was controversial for Pepsi to create this add considering the low success rate for companies and brands that mix their product with a social and political matter. Ultimately, mixing a product with politics through protest was the downfall for Pepsi as it degraded the sacrifice and suffering people have endured over history, coming off as offensive.
There is a constant change in society and am immense influence through technology, LEGO have done its best at creating a product that incorporates the digital world of programming with traditional LEGO bricks in order to stimulate and create fun for children. LEGO BOOST was awarded a winning product of 2017 from ToyAwards, for their innovative and successful product. This product helps teach younger generation how to adapt with new demands that will be set in the future. LEGO BOOST is successful as it combined fun and education within their product. This captures attention for parents as the LEGO can brand their product as beneficial for a child as they learn the language of block-based programming. Enhancing their creativity while bringing their images to life.