Posted: April 29th, 2015

marketing management

Assessment item 2
Understanding marketing
Value: 25%
Length: 2000 words
Presentation:
This assessment is to be submitted to Turnitin by midnight on the due date. Don’t need contents, introduction and executive summery. Please use the three questions as sub-headings and include APA references where required. A reference list should be included. Make sure your name and student number are included in the assignment.

The next stage of the marketing audit is for you to evaluate the opportunities and threats that exist for your chosen organization(my chosen company is H&M). Referring to the textbook, and with the use of secondary research, please provide informed answers to the following questions:

1. What is happening to market size, growth, geographical distribution and profits?
More specific:
 What is happening to market size, growth, geographical distribution and profits?
 You should be able to assess how /competitive is the industry
Key points of question 1
 market Definition
 Market Size, typical profit margins
– Market growth/Decline over the past and future 5-7 years
– Factors influencing market growth/decline (could be economic, legal, cultural, technological)
– Geographical locations of where the product is currently sold
– Market structure
2. Who are the major competitors? What are their strengths and weaknesses? What are their sizes? and trends in market share?
Competitors Analysis:
 Firms that market products similar to or that can be
substituted for its products in the same geographic
area.( pls mainly discuss 2 or 3 competitors)

(1) Brand competitors market products with similar
features and benefits to the same customers at similar
prices.
(2) Product competitors compete in the same product
class, but their products have different features, benefits,
and prices.
(3) Generic competitors provide very different products that solve the same problem or satisfy the same basic customer need.

 Competitive structures: (pls define which structure refer to the industry H&M belong to and explain why)
-Monopoly
A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply
-Oligopoly
A competitive structure in which a few sellers control the supply of a large proportion of a product
-Monopolistic Competition
A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product
-Pure Competition
A market structure characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply
Does not exist in the real world, although some industries come close

Key points for questions 4
Who are the closest competitors?
What are their strengths and weaknesses?
What is their market share?
What is their competitive strategy?

3.What are the major market segments? What are their expected rates of growth? Which are high opportunity and low opportunity segments?
Market Segmentation:
– Identify criteria to segment market
– Identify segments
– Describe segments using customer analysis
– Decide which segment/s to target – Identify a Positioning strategy

EVALUATING MARKET SEGMENTS
– Segment Size and Growth – Analyze current segment sales, growth rates, and expected profitability.
– Segment Structural Attractiveness – Consider effects of: competitors (how aggressive are they?), existence of substitute products (do they limit prices?), and the power of buyers & suppliers (bargaining power).
– Company Objectives and Resources – Examine company skills & resources needed to succeed in that segment. – Offer superior value & gain advantages over competitors.

4. How do different groups of customers make their buying decisions?
CUSTOMER ANALYSIS:
A) Who is the buyer (demographic, geographic, socio-economic, psychographic factors)
B) Why they buy the product (needs and wants)
C) Type of buying decision (low/high involvement, impulse, etc..
D) Where do they seek for information (depends on type of buying decision, internet, magazines, friends, experts..)
E) Where they buy the product (supermarket, internet, etc..)
F) Criteria used to choose the product (product benefits, lifestyle factors, price sensitiveness)
G) Buying roles (initiator, decider, influencer, user)
H) Current usage behavior? (usage, frequency of use/purchase, buyer different from user)
Attention: in order to past this assignment, teacher required us :
(1) The report structures need to follow the description below, to be more clear pls check the file that I uploaded (the file is from my friends writing don’t copy the words only follow the fomat)
(2) Textbook must be one of the references and all the references must be from 2010 to 2015:
Pride, William, Ferrel, OC, Lukas, Bryan, Shembri, Sharon and Outi, Nininen (2015) Marketing Principles: 2nd Asia Pacific Edition, Cengage Australia, ISBN: 9780170254793.
(3) My chosen company is H&M. (http://www.hm.com/entrance.ahtml?orguri=/) SOME QUESTIONS NEED TO PAY ATTETION like maket size : when you use sales to describe this . its not H&M’s sales it’s the whole clothing& accessories market sales).
(4) Using table and charts to explain some points