BSBMKG501

Identify and Evaluate Marketing Opportunities

BSBMKG501 Student Assessment Workbook | Student ID: Page 1

Assessment Event 1 – Knowledge Questions
Question 1
Outline key provisions of relevant legislation, codes of practice and national standards affecting marketing
operations.
Write your response into the table:
Legislation/Codes/Standards
1. Do not Call Register Act
2. Spam Act
3. Broadcasting Services Act
4. Privacy Act
5. Age Discrimination Act
6. Competition and Consumer Act
7. Copyrights Act
8. Racial Discrimination Act
9. Fair Work Act
10. Disability Discrimination Act
11. Australian High Commission Act
12. Sex Discrimination Act
BSBMKG501 Student Assessment Workbook | Student ID:
Summary of Key Provisions
It is illegal for telemarketers to call Australian phone numbers which
are mainly for personal or domestic use and whose owners have
put them on the do-not-not call register.
It a civil offence to use address harvesting software to construct
distribution lists of recipients. Any unsolicited commercial emails
must contain accurate information about the origin of the mail and
provide a clearly visible means for recipient to opt out.
Provides that the Office of the Australian Information Commissioner
is responsible for freedom of information functions, privacy
functions and information policy functions.
Provides Protection against age discrimination in employment,
provision of goods and services, education and the administration of
Commonwealth Laws and Programs
It provides equality within the law against discrimination on race,
colour, nation or ethnic group.
Helps to minimise discrimination against persons who have
disability
Expresses the Australian Human Rights Commission role and
duties
Protects people from being discriminated based on their sexual
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Question 2
Explain principles of marketing and marketing mix.
Write your response into the table:
Principles Explanation of the marketing mix
The product needs to meet a certain consumer
demand or must be so compelling that consumers
Product believe they need it. There are certain product
decisions that need to be taken before making any
marketing plan
Price is the amount customer pays or is willing to
pay for the product. A major consideration in
pricing is the costing of the product, advertising
Price
and marketing expenses, any price fluctuations in
the market, distribution costs etc. Another
important factor is the competitive pricing.
Marketers must determine how they will promote
their products and services. This includes
marketing, traditional advertising, and web
Promotion
promotions. Traditional advertising methods
include television, radio, print media and
billboards.
Marketers need to determine which physical
channels of distribution they will use to sell their
Placement products and services. This includes which physical
places and which Internet sites at which to sell
their products.
Industry-specific example
Consumer products can be categorized as
convenience goods, for which consumers are
willing to invest very limited shopping efforts.
Certain retailers like Wal-Mart tend to focus on
providing constant low prices without any real
sales. Other retailers instead feature prices
which, when not discounted, are somewhat
higher. To compensate, periodic sales feature
price reductions.
Integrated Marketing Communication involves
the idea that a firm’s promotional efforts
should be coordinated to achieve the best-
combined effects of the firm’s efforts.
Breaking bulk—the consumer can buy small
quantities at a time. Small and modest scale
retailer. For example, a bookstore can buy
modest quantities. This service reduces
quantity discrepancy in the supply-demand
relationship between manufacturers and end
customers.

Question 3
Describe statistical methods and techniques, including forecasting techniques, to evaluate marketing opportunities.
Write your response into the table:
Statistical techniques and methods
1. Multiple Regression
2. Logistic Regression
3. Discriminant
4. Multivariate Analysis of Variance
Industry-specific example
Multiple regression is the most commonly utilized multivariate
technique. It examines the relationship between a single metric
dependent variable and two or more metric independent variables. The
technique relies upon determining the linear relationship with the lowest
sum of squared variances; therefore, assumptions of normality, linearity,
and equal variance are carefully observed.
Sometimes referred to as “choice models,” this technique is a variation of
multiple regression that allows for the prediction of an event. It is
allowable to utilize nonmetric dependent variables, as the objective is to
arrive at a probabilistic assessment of a binary choice. The independent
variables can be either discrete or continuous.
The purpose of the discriminant analysis is to correctly classify
observations or people into homogeneous groups. The independent
variables must be metric and must have a high degree of normality. The
discriminant analysis builds a linear discriminant function, which can
then be used to classify the observations.
This technique examines the relationship between several categorical

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 Statistical techniques and methods
5. Factor Analysis
6. Cluster Analysis
7. Multidimensional Scaling
8. Correspondence Analysis
9. Conjoint Analysis
10. Canonical Correlation
BSBMKG501 Student Assessment Workbook | Student ID:
Industry-specific example
independent variables and two or more metric dependent variables.
Whereas analysis of variance assesses the differences between groups.
This is an independence technique, in which there is no dependent
variable. Rather, the researcher is looking for the underlying structure of
the data matrix. Ideally, the independent variables are normal and
continuous, with at least three to five variables loading onto a factor.
The purpose of cluster analysis is to reduce a large data set to meaningful
subgroups of individuals or objects. The division is accomplished on the
basis of similarity of the objects across a set of specified characteristics.
Outliers are a problem with this technique, often caused by too many
irrelevant variables.
This is a decomposition approach that uses perceptual mapping to
present the dimensions. As an exploratory technique, it is useful in
examining unrecognized dimensions about products and in uncovering
comparative evaluations of products when the basis for comparison is
unknown.
This technique provides for dimensional reduction of object ratings on a
set of attributes, resulting in a perceptual map of the ratings. It is a
compositional technique and is useful when there are many attributes
and many companies. It is most often used in assessing the effectiveness
of advertising campaigns.
It is both a compositional technique and a dependence technique, in that
a level of preference for a combination of attributes and levels is
developed. A part-worth, or utility, is calculated for each level of each
attribute, and combinations of attributes at specific levels are summed to
develop the overall preference for the attribute at each level.
This technique has the fewest restrictions of any of the multivariate
techniques, so the results should be interpreted with caution due to the
relaxed assumptions. Often, the dependent variables are related, and the
independent variables are related, so finding a relationship is difficult
without a technique like canonical correlation.
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Assessment Event 2 – Emu Fitness Simulation
In this simulation, you will take the role of Marketing Specialist for a fitness and health organisation called Emu
Fitness. In this role, you will show your skills in identifying, evaluating and taking advantage of marketing
opportunities. You will undertake an analysis of the market data and information, review the characteristics and
trends, and then assess the viability of changes to its current operations.

Task 1: Identify marketing opportunities

In this task, you will focus on an analysis of the external market in particular variables such as consumer interests,
technology, competition etc. in an attempt to identify potential marketing opportunities.

1.1 Analyse information on market

Insert your responses into the table:
Macro Facts Marketing Opportunities Rationale
1. Disposable income low in some Expansion
sectors and high in rich areas
2. Social and Cultural Forces Health awareness program

3. Increased interest in Fitness apps

technology
4. Increase in number of Introduce new services
competitors
5. Friendly qualified staf More Clients

1.2 Research potential new markets

Insert your responses here:
Due to the increased number of competitors who are offering same services there is an opportunity of introducing
something new to the industry that will draw more clients for example introducing a café where people can have
healthy meals after finishing their fitness activity.

Technological Shift

Digital marketing, which focuses majorly on marketing using technological tools, is not just a buzzword; it is now a
behemoth in the marketing world. With predictions of marketers spending over $375 Billion on digital adverts by the
time the year 2021 rolls in, it is clear to see it is actually a big deal. Astonishing reality of the world we live in is how
fast technology evolves
Competition

Now days there are more competition in the market, but still important online market, there are various boutique
studios, which have also been growing very quickly all over the country. These studios are usually quite small and
specialized. Spinning, high-intensity interval training classes, circuit training, bare, Pilates – you name it, there is a
boutique studio to fit that need.
Risk
There are many risks in bringing in the online market
No new gym centre open
Economic fall down

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Need more space for gym centre
It makes passive exercise
Technological market
The world we live in today has been driven largely by technology in one form and another. From healthcare, to travel,
to entertainment, in business there are no areas that have not been touched in some way by technological progress.
So, what can we expect to see over the coming years? Is technology going to continue growing at such a steady rate?
Or has it already slowed down? And can you really rely on any technological investment to be a savvy way to keep
your money such as
Technology is taking over
Is technology going to continue growing at such a steady rate? Or has it already slowed down? And can you really rely
on any technological investment to be a savvy way to keep your money such as now a day’s technology market is
reach in highest point.
Competition
Now days there are more competition in the market from the newest consumer gadgets to the explosion in
communications capability that is driving global economic growth, technological innovation enhances our lives and
provides us with new tools to perform everyday tasks. The Federal Trade Commission promotes competition in
technology industries (like fitness aps, computers, software, communications, and biotechnology) as the best way to
reduce costs, encourage innovation, and expand choices for consumers. Because the stakes are high in these fast-
paced markets and the benefits to consumers and to the economy substantial, in the fitness there are various canter
competition in the market such as
24 hours fitness
Fitness first
Everyday fitness
Risk
-Various risks for manufacture, distributors, and consumer
-Destroyed artificial intelligence
-Steep Pressure to Innovate
- Workforce Shortage
- Lacking in Diversity

1.3 Explore entrepreneurial approaches for their potential business application

Insert your responses here:

An influx of new technology in the day by day of you tube market and social data points allows today’s marketers to
drill down into a deeper profile of their prospective buyers. And it’s a lot more cost effective to target a specific
audience than it is to blast your message to everyone and then hope our ideal consumers hear it. These “buyer
personas” help reveal what it is about your buyers that drives them to make the purchasing decisions they do.

One of the fundamentals is that with this customer understanding helps us to tailor your advertising so that it is
ideally suited to connect with your target buyers. The more we can break up potential consumers into
comprehensible segments, the more effective we will be at turning marketing dollars into sales. Creating personas for
your most meaningful segments can help you develop on-target blog articles, effective email marketing campaigns,
and other advertising and marketing. It’s particularly true in health and fitness, where studies have shown the

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customer lifetime value is largely affected by intention to repurchase, and intention is positively impacted through
consistent brand image, customer service and commitment

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Task 2: Investigate marketing opportunities
In this task, you will review your two marketing opportunities for alignment with the organisations capability. This
analysis will lead to an estimation of the return on investment and from this the development of a priorities matrix.

2.1 Analyse fit between marketing opportunities and organisational goals and capabilities
Insert your responses here:
In today’s business environment, sustaining growth and profitability is never a guarantee. Technological and scientific
advances shorten life cycles of products and services, business models change and new competitors appear from
outside the industry.

The initial planning of the EMU fitness simulation is to achieve the following operational goals:

 Contributing to the fitness of the customers

 To surge owner equity

 To grow and to maintain the status of the organization as a leading organization.

 To provide a positive and can-do workout atmosphere

 To create balance in making impact and subtleness of the organization.

 Increase availability of workout equipment.

The External Analysis takes a look at the opportunities and threats existing in your organization’s environment. Both
opportunities and threats are independent from the organization.

The suitability deals with size and growth of the opportunity and organizational capabilities, the overall rationale of
the strategy. One method of assessing suitability is using a strength, weakness, opportunity, and threat (SWOT)
analysis. A suitable strategy fits the organization’s mission, reflects the organization’s capabilities, and captures
opportunities in the external environment while avoiding threats. A suitable strategy should derive competitive
advantage. Opportunities are favorable conditions in an organization’s environment that can produce rewards if
leveraged properly. Basically, we consider what changes should be made in our growth objective and strategy for
achieving it, the lines of business we are in, and how these lines of the business fit together.

The strategy follows structure. What the organization does defines the strategy. Changing strategy means changing
what everyone in the organization does. When an organization changes its structure and not its strategy, the strategy
will change to fit the new structure.

SWOT analysis is just the first step in developing and implementing an effective organizational strategy. After a
thorough SWOT analysis, the next step is to rank the strengths, weaknesses, opportunities, and threats and to
document the criteria for ranking. The EMU fitness must then determine its strategic fit given its internal capabilities
and external environment.

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With the External risks of entering the market, an organization will only enter new markets if benefits outweigh
risks. Determining this is an important part of EMU Fitness Simulation into the new market and considers these main
areas:

1. Sales volume

Generally, entry into a new market of introducing other services that are not offered by other fitness companies
should increase sales volume (usually beneficial). The organization needs to ensure it has the ability to manage the
increased sales. An increase in sales at the cost of reduced customer service would be counterproductive. It could
also cause cash flow problems if the financial consequences were not managed properly.

2. Growth

Organizations often reach a limit in their growth within one market and so enter new markets to allow continued
growth of the business. A real estate organization might reach a level in the domestic housing market and believe
that it would be uneconomical to try to expand their market share any more, they could continue overall business
growth by entering the commercial property market. The risk of rapid growth might be a lack of infrastructure and
expertise to properly manage the listings in the new market. The growth of an organization needs to be carefully
planned and monitored.

3. Market share

Increasing market share is not technically entering a new market, but the benefits and risks are similar. An increased
market share:

 Can result in increased sales and growth

 In one market could require a decrease in another market. If the expanding market is profitable and the
diminishing market less profitable, the change would be beneficial to the organization.

2.2 Evaluate each opportunity to determine impact on business and customer base
Insert your responses here:
Once the viability of changing operations has been determined, the nature and viability of the changes need to be
communicated to key stakeholders within the organisation. Remember viability will be assessed in terms of:

Financial: the change must be able to produce a profit within an acceptable time frame without dangerously
reducing the organisation's cash flow prior to that time

Physical: the physical resources such as suitable premises, adequate equipment and suitable infrastructure must be
available or obtainable

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Efects on other markets: the proposed changes should enhance or at least cause no damage to the organisations
existing viable markets

Efects on the overall operations: there is some risk in entering a new market and the opportunity can only be viable
if the benefits outweigh the risks. One serious risk to implementing any change can be resistance by the people who
are affected by it.

Many stakeholders do not want to know all the details of the proposal and its viability. They simply want to be sure
that the appropriate personnel have assessed it thoroughly. The offer of a full analysis is reassurance to these people
that the evidence is available, and enables the message to be kept short and simple, increasing the chances of its
being understood. Those who want all the details also have the option of seeing them

2.3 Determine probable return on investment

Insert your responses into the ROI and Costs Template Excel template which is a separate document provided to you
by your Assessor, and attach a print output to your Student Assessment Workbook.

2.4 Determine potential competitors

Insert your responses here:
There are three potential competitors who are:
-fitness first

- Anytime fitness

-everyday fitness

However, the following two seem to be the primary ones:

Fitness first

Centre chain headquartered in San Ramon, California. It is the world's second largest fitness chain based on
memberships after LA Fitness and the third in number of clubs (behind LA Fitness & Gold's Gym), operating 420 clubs
in only 13 U.S. states with four million clients to LA Fitness's 725 clubs in 30 states. 24 Hour Fitness also employs a
collection contracting company located in Jamaica. The company was founded by Mark S. Maestro and owned by
AEA Investors. 24 Hour Fitness operates a nutritional supplement company, Apex Fitness Group, which is also the
distributor of the Bedbug system. Their motto is "Improving lives through fitness."
Everyday fitness

Anytime Fitness is a 24-hour health and fitness club headquartered in Woodbury, Minnesota. The company operates
over 4,000 franchised locations in 50 countries. The gym facilities are open 24 hours a day, 365 days out of the year.
Chuck Runyon, Dave Mortensen, and Jeff Klinger founded Anytime Fitness in 2002. Runyon is the CEO of the
company. According to Forbes, Anytime Fitness was the fastest growing health club franchise in 2014. In
2015, Entrepreneur Magazine ranked Anytime Fitness first on its global franchise list.

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2.5 Describe and rank marketing opportunities
Insert your responses into the table below:

Opportunity Fit with Market Size Potential Investment Capability of Time to

Name strategy? needed organisation? profit
$
cafeteria Yes Most of the 1000 4000 As emu fitness Annually
people have a has diverse
busy schedule customers or
and would members. It
consider to rather has very much
have a service capability to
which will save grow business
their time of online.
travelling
Score [1-10] 8/10 8/10 8/10 5/10 8/10 8/10
(10 highest)

Technologica Company is Significant 11,321 214,983 Emu has a Half yearly

l market stagnating growth (99%first solid margin
its current half of and can
form 2016fortechnolog accommodate
y market ) the purchase
The new
of the gadgets
gadget
however it
market can
does have
act as a
significant
catalyst to
weaknesses ,
achieve
particularly :
company
staff
goals and
motivation
objectives
and
management
skills
Score [1-10]
8/10 7/10 7/10 5/10 8/10 5/10
(10 highest)

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Task 3: Evaluate required changes to current operations
In this task, you will develop strategies and resources to ensure that Emu Fitness can provide quality customer
service to its current members which will take advantage of the planned marketing opportunities.

3.1 Identify and document changes and resources required for current operations
Insert your responses here:
Whenever an organisation takes advantage of new market opportunities some changes to its operation will be
required. These changes can be categorized under main headings:

1) Staf

New sales staff and new support staff may be needed to accommodate the increase in sales and provide after-sales
service. All staff will need to be trained to carry out their roles in the new market.

2) Work practices

Policies and procedures need to be reviewed to ensure that they accommodate the new market and any new
systems to be adopted.

3) Legal

New markets can make an organisation subject to legislation which had not previously applied to its activities. An
organisation which decided to sell its products to the consumer market, after having sold exclusively to the business
market would find itself subject to consumer protection laws. It would need to document its responsibilities in detail
and ensure all relevant personnel understood the new responsibilities.

4) Financial

The expected financial impact of the new market opportunity is critical in the planning process. Relevant information
would include cash flow forecasts, profit estimates, cost analyses and predictions of return on investments. Most
organisations require professional advice on these predictions. If finances need to be raised to enter the new market,
business plans, feasibility studies, and cash flow predictions will be required for financial institutions and general
planning.

When an organisation enters a new market it requires additional resources and/or a reallocation of existing
resources to open the market and service it. During the planning stage, these resources will be identified and new
resources will be located. This could include negotiating offers of supply because costs need to be budgeted and
reliable supply, at the required levels, needs to be confirmed.

a) Promotion

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Promotion into new markets can include advertising in various media, product giveaways, seminars, expos, static
displays, direct mail campaigns, leaflet drops, spruikers and competitions. Organisations must plan their promotional
campaigns to suit their own needs, culture and budget to ensure they have the resources they need.

b) Research and development

Marketing opportunities need to be thoroughly researched to establish their potential. Organisations need to know
what research resources they need and whether they can conduct their own market research or have to use market
research organisations. After a new market has been identified it needs to be developed, especially for a new
product.

c) Re-tooling

Manufacturers who develop new products need to re-tool their factories and need to budget for this when the
organisation develops the new market. This can be a simple adjustment of current resources as in the case of Emu
Fitness.

3.2 Communicate viability of changes to current operations

Not required. You will be holding a meeting with two stakeholders. Please refer to your Student Assessment
Workbook for detailed instructions.
Once the viability of changing operations has been determined, the nature and viability of the changes need to be
communicated to key stakeholders within the organisation. Remember viability will be assessed in terms of:

 Financial: the change must be able to produce a profit within an acceptable time frame without dangerously
reducing the organization’s cash flow prior to that time

 Physical: the physical resources such as suitable premises, adequate equipment, and suitable infrastructure
must be available or obtainable

 Effects on other markets: the proposed changes should enhance or at least cause no damage to the
organizations existing viable markets

 Effects on the overall operations of the organization

There is some risk in entering a new market and the opportunity can only be viable if the benefits outweigh the risks.
One serious risk to implementing any change can be resistance by the people who are affected by it. When the
majority of employees have not experienced and understood the pressures for change and grasped the need to
change, and have not participated in developing the change. A landscape supplier who had decided to add garden
furniture to its product range would need to explain the proposal, its benefits, and its risks. This could be done in a
meeting, an email or both.

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Many stakeholders do not want to know all the details of the proposal and its viability. They simply want to be sure
that the appropriate person has assessed it thoroughly. The offer of a full analysis is a reassurance to these people
that the evidence is available, and enables the message to be kept short and simple, increasing the chances of its
being understood. Those who want all the details also have the option of seeing them. A key stakeholder is anyone
who plays a part in implementing the change or anyone whose function is affected by the change, and while it is
different for every organisation in terms of size and complexity, stakeholders can include:

Board of The board is ultimately responsible for the organization’s performance and
Directors must approve any changes to operations. They must also be kept
informed as the changes are introduced.
Finance staf Finance staf can be involved in planning the changes and preparing
budgets for their introduction and ongoing implementation. They also
need to be fully informed as changes are implemented so that they can
monitor the financial aspects and ensure that the budget is adhered to.
Human Responsible to ensure there are adequate personnel who are properly trained
resources to implement the change. HR staf has three main functions when developing
staf a new market: recruit staf required to implement the changes, identify
current staf that needs to be trained or retrained for new or extended roles,
and arrange and oversee all necessary training and retraining.
Managers If a department is afected in any way by proposed changes its manager
needs to be informed. The sales department would be critical when
introducing a new product or opening a new market. The sales manager
needs to be fully briefed. If the organisation were entering a new market
for an existing product then this might not cause any changes to
operations of the stores department, but the store manager would need to
be advised to plan for increased turnover of that product.
Marketing Marketing personnel are responsible for identifying and developing new
personnel marketing opportunities and when an opportunity is taken they must
develop a campaign to allow the organisation to successfully enter the
new market. Marketing personnel are involved in almost all marketing
activities and need to be kept informed of them.
The owners Like the board of directors, are concerned with the viability of the organisation
as a whole and should be advised of all major changes to operations.
Production Some changes involve producing new products while others require
staf increased production of established products. Organisations which
manufacture their own products must advise and train production staf to
ensure new products and extra volumes of existing products can be made
in the quantities required and that quality is maintained.

Changes to current operations can include:

 Staff, including recruiting and training new staff and retraining current staff

 Work practices, including altering existing practices and introducing new ones

 Premises, including expansion, refitting or finding new premises

 Equipment, including adapting and duplicating existing equipment and purchasing new equipment

 Legal issues and compliance with regulations

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  Financial practices, including refinancing, and

 Adopting new billing and/or accounting methods

The viability of proposed changes to operations must be determined and then communicated to all key stakeholders
because the success of the changes depends on their support. The key stakeholders will not give the level of support
needed unless they clearly understand the benefits of the changes and have confidence that the proposal has been
properly assessed.

3.3 Document newly identified report on marketing opportunities and required changes
to
Upon the receipt of the feedback from the stakeholders, make the necessary adjustments to your earlier findings
where necessary.
Changes which need to be made in response to new marketing opportunities must be documented:

 To ensure all changes, including knock-off effects, are identified and appropriate plans are made to manage
them
 As a means of informing all personnel who need to know about them

New markets can require an organization to develop additional capacity to some of its current operations or to
introduce new practices and procedures, depending on the relationship of the new market to its current markets.

A wholesaler of dried and canned foods would need to increase the capacity of its operations if it became the sole
distributor for a major breakfast cereal manufacturer but would not need to make major changes to its current
practices and procedures.

The new market could promote the market for bakery products from the same manufacturer and it could also knock
out another brand of breakfast cereal. If the same wholesaler became a distributor of fresh meat it would have to
introduce new procedures, equipment, and work practices and would become subject to a new set of regulations
and laws.

The changes will be determined by the nature of the organization, its current markets and operations, and the new
marketing opportunity. Some organizations and some markets would require changes in other areas, while some
organizations would not need to consider some of these factors. Each organization must determine and document its
own changes for each new market it enters.

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 For Assessor Use Only

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