Learner Guide: Heart Trust/National Training Agency

LG - BSBMKP0322A IDENTIFY MARKETING OPPORTUNITIES
LEARNER GUIDE
IDENTIFY MARKETING OPPORTUNITIES
Published by
HEART TRUST/NATIONAL TRAINING AGENCY
Produced by
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Jamaica W.I.
This material is protected by copyright. Copying this material or any part of it by any means, including
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*** 2010 ***
Version 1 - LRDU – JUL. 10

TABLE OF CONTENTS
PAGE
Introduction………………………………………………………………………………... 1
Welcome…………………………………………………………………………… 1
This Competency Unit……………………………………………………………… 1
Before you start…………………………………………………………………….. 2
Planning your learning programme………………………………………………... 2
How to use this Learner Guide…………………………………………………….. 4
Using the Computer and Other Resources………………………………………… 6
Method of Assessment…………………………………………………………….. 6
Quality Assurance…………………………………………………………………. 6
Element 1: Confirm business needs…………………………………………………… 7
Self Assessment Checklist…………………………………………………………... 26
Element 2: Identify marketing needs………………………………………………….. 27
Element 3: Identify marketing opportunities…………………………………………. 40
Version 1 - LRDU – JUL. 10

LG-BSBMKP0322A:
IDENTIFY MARKETING
OPPORTUNITIES
INTRODUCTION
Welcome
Welcome to the Learner Guide for Unit of Competency “Identify Marketing Opportunities”.
This is just one of a number of Learner Guides produced for the Merchandising skills stream of
the Business Services Industry, and it is designed to guide you, the learner, through a series of
learning processes and activities that will enable you to achieve the specified learning outcomes
for the competency unit.
The content of this guide was developed from the Competency Standard BSBMKP0322A,
which is one of the basic building blocks for the National Vocational Qualification of Jamaica
(NVQ-J) certification within the Business Services industry. Please refer to your Learner
Handbook for a thorough explanation of standards and competencies, and how these relate to the
NVQ-J certification.
You are also advised to consult the Competency Standard and assessment instrument for a better
understanding of what is required to master the competency.
This Competency Unit
“Identify marketing opportunities” addresses the knowledge and skills requirements for
effectively perform merchandising duties. There are three main areas or elements:
Element 1: Confirm business needs
Element 2: Identify market needs
Element 3: Identify marketing opportunities
Appendix 1: Strategic Plan Outline
Appendix 11: Marketing Plan Outline
As you go through each element, you will find critical information relating to each one. You are
advised to study them carefully so that you will be able to develop the necessary knowledge,
skills and attitudes for performing retail finance duties.
Version 1 - LRDU – JUL. 10 1 1

Before you start
Before you start this Learner Guide, you need to:
a. Obtain a Learner Logbook. You will use it to record evidence of your new
skills/competence. As you demonstrate your new skills, record your activities and have your
learning facilitator sign off on them. This will allow you to provide evidence of your
competence when you are being assessed against the competency standard.
b. Ensure that you have access to the facilities and equipment necessary for learning.
c. Ensure that your learning resources are available.
d. Ensure that you are wearing suitable clothing, that tools and equipment are safe, and that the
correct safety equipment is used.
e. Plan your learning programme (see below)
f. Understand how to use this Learner Guide (see below)
Planning your learning programme
The self-assessment checklist on the following two pages will assist you in planning your
training programme and it will help you to think about the knowledge and skills needed to
demonstrate competency in this unit. As you go through the checklist you will be able to find
out what elements you have already mastered and which ones you will need to pay more
attention to as you go through the learning process.
To complete the self-assessment checklist, simply read the statements and tick the ‘Yes’ or ‘No’
box. You should do this exercise now.

Self-Assessment Checklist
Identifying Marketing Opportunities
Element 1 Confirm business needs Yes No
1. I can identify business information to confirm current

performance and market position ( ) ( )
2. I can confirm direction and goals of the business ( ) ( )
3. I can confirm existing structure and operation of the business ( ) ( )
4. I can outline how to identify and record current capabilities

and resources ( ) ( )
5. I can identify business needs in accordance with the strategic

plan and the marketing plan ( ) ( )
Element 2 Identify market needs Yes No
1. I can investigate market trends and developments to identify

market needs relative to the business ( ) ( )
2. I can source comparative market information to identify

possible market needs in relation to the business ( ) ( )
3. I can identify the legal and ethical requirements of the

market and their impact on the business ( ) ( )
4. I can identify new and emerging markets and document their

features in accordance with organization requirements ( ) ( )

Element 3 Identify marketing opportunities Yes No
1. I can identify and describe marketing opportunities in

accordance with organizational requirements ( ) ( )
2. I can present marketing opportunities and supporting

information for evaluation in accordance with organizational
requirements. ( ) ( )
How did you do?
If you ticked all or most of the ‘Yes’ boxes then you might not need to go through the entire
guide. Ask your learning facilitator to assist you in determining the most appropriate action you
should take.
If you ticked a few of the ‘Yes’ boxes or none at all then you should work through all of the
guide, even though some of the material may be familiar to you.
Plan your learning based on your answers. Be sure to involve your learning facilitator in the
planning process.
How to use this Learner Guide
This Learner Guide is designed to assist you in working and learning at your own pace.
We suggest that you:
 Go through the sections/elements as they are presented (starting at Section 1)
 Check your progress at each checkpoint to ensure that you have understood the material
 Observe the icons and special graphics used throughout this guide to remind you of what you
have to do and to enhance your learning. The icons and their meanings are as follows:

Complete Assessment Exercise

This exercise requires you to think about the knowledge and
skills that you have or will develop in this competency unit.
Definition Box
Words/phrases are defined or explained in this box. The
words/phrases being explained are in bold print.
Checkpoint
This denotes a brain teaser and is used to check your
understanding of the materials presented. No answers are
provided for the questions asked.
Activity
This denotes something for you to do either alone or with
the assistance of your learning facilitator.
Reference
Points you to the reference materials and other support
documents or resources used in compiling the unit content
 Ask your learning facilitator for help if you have any problems with the interpretation of the
contents, the procedures, or the availability of resources
 Complete each activity as you come to it. If the activity requires that you perform an actual
task, be sure to tell your learning facilitator when you get to that activity so that he/she can
make any arrangements, if necessary
 Get your learning facilitator to sign and date the Learner Logbook when you have completed
an activity
 Complete the self-assessment checklist at the end of each section or element

When you have worked through all elements of the guide, and when you can tick every ‘Yes’
box, you are ready for assessment and should ask your learning facilitator to assist you in making
the arrangements to have your performance assessed.
Using the Computer and Other Resources
Where your activities refer you to the library, computer and/or Internet resources, ask your
learning facilitator to assist you in locating these resources. If you are getting your training in an
institution, there may be a library and a computer laboratory. If this is not the case, visit the local
library and find out what resources are available.
If you are new to the computer and the Internet, someone in the computer room should be able to
show you how to use these resources.
Please note that in many of your activities you have been referred to information on the Internet.
This is because the Internet has a vast amount of information that can help you in acquiring the
particular competencies. We would like to advise you, however, that we cannot guarantee that
all the sites will be available when you need them. If this happens, ask your learning facilitator
to assist you in locating other sites that have the information you require.
Method of Assessment
Competency will be assessed while you are actually performing the tasks related to this
competency. This may be in a real workplace or a simulated situation that accurately relates to
the work situation. You are advised to consult the associated competency standard for further
details relating to the assessment strategies.
Quality Assurance
A feedback form is included at the back of each learner guide, so all users are afforded the
opportunity to document their concerns pertinent to the various aspects of the guide. Such
concerns will assist in the review process of the learner guides. Users are encouraged to cut out
the form, complete and submit same to the address provided.
You may now start your learning. Have fun while you work!

ELEMENT 1: CONFIRM BUSINESS NEEDS
LEARNING OUTCOMES
As you go through this element you will acquire the necessary knowledge, skills and attitudes to
identify marketing opportunities. Your learning facilitator is there to assist you with the various
activities, so that on completion you should be able to:
1. Identify business information to confirm current performance and market position

2. Confirm direction and goals of the business
3. Confirm existing structure and operation of the business
4. Identify and record current capabilities and resources
5. Identify business needs in accordance with the strategic plan and the marketing plan
IDENTIFY BUSINESS INFORMATION
Since your goal is the identification and presentation of potential marketing opportunities to enable
evaluation and selection of viable opportunities” (Competency Descriptor, BSBMKP0322A), let us first
consider, “What are marketing opportunities?” A good place to begin is with a definition of
marketing by The American Marketing Association:
Marketing - the activity, set of institutions, and

Marketing therefore includes:
processes for creating, communicating,
delivering, and exchanging offerings that have
 Marketing of goods and services
value for customers, clients, partners, and
society at large.  Ideas marketing
 Direct marketing
American Marketing Association (Approved  Telemarketing
October, 2007)  Business-to-business marketing
Underlying all marketing efforts is the fact that humans have needs – “states of felt deprivation,”
which include:
 Basic physical needs - for food, clothing, warmth and safety
 Social needs - for belonging and affection
 Individual needs - for knowledge and self-expression
Humans also have wants. Wants are the forms that needs take when shaped by culture and
individual personality. For example, a Jamaican needs food, but wants ackee and salt-fish, roast
breadfruit, fried plantain and ‘chocolate tea’. An American needs food, but wants pancake, bacon
and coffee. Therefore, whenever there are needs and wants, potential marketing opportunities
exist.

CHECKPOINT:
 What is a marketing opportunity?
A less comprehensive definition of marketing than that proposed by the American Marketing
Association is: “the identification and profitable satisfaction of customers’ needs.” This implies
that for a business to perform profitably by satisfying needs, you must make certain that the
market needs meet the needs of the business. Before determining whether there is an opportunity
to be seized or created, you must first assess the firm’s current position.
Marketing opportunities are identified by reviewing questions such as:
 How can the organization keep up with competitors?

 How can the organization harness marketing and innovation opportunities?
 How can the organization deal with changes in the market and industry?
 How can new markets be penetrated?
 How can the organization improve the effectiveness and profitability of its marketing and
selling strategy?
 How can challenges and weaknesses in the organization and industry be dealt with?
A marketing audit is a useful tool for assessing achievement of this objective.
Marketing audit - an analysis of the external marketing

environment or a company's internal marketing goals,
objectives, operations, and efficiency.
http://dictionary.bnet.com/definition/marketing+audit.ht
ml
An internal marketing audit is an opportunity to put your firm under the microscope: Do you
know as much about your own company’s situation as you should?
 Sales (total, split by geography, industry, customer, product)

 Market shares
 Profit margins
 Costs
 Marketing information research
 Effectiveness of marketing mix
 Competition

Putting the external and the internal audit results together produces a SWOT Analysis – the
strengths and weaknesses of the firm and the opportunities and threats in the environment.
Completing a successful SWOT analysis requires good information which can be obtained from
a variety of sources. These include:
 Internal data
 Marketing intelligence
 Marketing research
Internal Data
Many companies build extensive internal databases, electronic collections of information

gathered from data sources within the firm. If this is the case in your organization, you will be
able to readily access and work with the information in the database to identify marketing
opportunities. The information in the database can come from many sources. For example, the
accounts department prepares financial statements and keeps detailed records of sales; the
marketing department provides information on customer demographics and buying behavior, the
sales department generates sales reports and on competitor activities and the customer service
department keeps records of customer satisfaction or service problems.
Marketing Intelligence
Marketing intelligence – the The goal of marketing intelligence is to improve

systematic collection of publicly strategic decision-making, assess and track
available information about competitor’s actions and provide early warning of
competitors and developments in the opportunities and threats. Techniques range from
marketplace. questioning the company’s own employees and
benchmarking competitors’ products to researching
Source: Principles of Marketing (cited) on the Internet and attending industry trade shows.
In some cases companies have gone as far as to search their competitors’ garbage! On the other
hand, competitors reveal intelligence information through:
 Annual reports
 Business publications
 Trade show exhibits
 Press releases
 Advertisements
 Web site

Marketing Research
Market Research - the systematic gathering, Marketing research is useful for:

recording and analysis of data about customers,
competitors and the market  Understanding customer satisfaction
and purchase behavior
(Source: Market Research Methodology  Assessing market potential and
http://www.marketresearchanalyst.com/wp- market share
content/uploads/2008/01/market_research_meth  Measuring effectiveness of pricing,
odology.pdf) product, distribution and promotional
activities
Marketing research is a four-step process that covers:
 Defining the problem and research objectives

 Developing the research plan/design
 Implementing the research plan/design
 Interpreting and reporting the findings
Marketing research can have one of three types of objectives:
 Exploratory research – to gather preliminary information that will help define the
problems and suggest hypotheses
 Descriptive research – to describe marketing problems, situations or markets such as the
market potential for a product or the demographics and attitudes of consumers
 Causal research to test hypotheses about the cause-and-effect relationships
There are two types of information available to conduct your research: primary data and
secondary data.
Primary data - original information Secondary data - information that

gathered for the specific purpose at already exists, having been collected
hand for some other purpose.
Source: Principles of Marketing Source: Principles of Marketing (see

(see citation) citation)
Both types of research have a number of activities and methods associated with them. You would
start by gathering secondary data because it is usually faster and less expensive to obtain than
primary data and could be as simple as making a trip to a local library or business information
centre, government sources, browsing the internet or searching through business journals and
magazines.

Internally, your company’s database is a good place to start. Internal sources include:
 Budget information
 Previous sales figures
 Profit and loss statements
 Inventory records
Primary research is concerned with the collection of data directly from the market and designing
a plan for its collection calls for a number of decisions on data collection methods. Whilst there
are differences in approach, remember you need to be clear on:
 Objectives - why is the data being gathered, for what purpose and what are the proposed
sources
 Development of ideas or hunches on the procedure
 Hypothesis development
 Research designs, experiments, observations, simulations, descriptive research
 Questionnaire design
 Data collection method - mail, telephone, interview, observations
 Sample size and selection
 Data collection methodology and supervision
 Analysis and report writing
While there are many ways to perform primary research, most businesses use one or more of five
basic methods:
 Surveys
 Focus groups
 Personal interviews
 Observation
 Field trials
Whether you choose a combination of research methods or a single one, both types must be
evaluated to ensure that it is:
 Relevant
 Accurate
 Current
 Impartial

The type of data needed and how much money the company is willing to spend will determine
which techniques are chosen.
Market Position - ranking of a brand,

product, or firm, in terms of its sales volume
relative to the sales volume of its competitors
in the same market or industry.
BusinessDictionary.com
As you review the company’s business information, keep in mind that your primary objective is
to answer the question “where are we now?” Answering this question will confirm the market
position of the firm.
CHECKPOINT:
 What are the steps in the marketing research

process?
 Why would a company want to know its market

position?
ACTIVITY:
Research and make notes of the five (5) basic ways in which
primary data is collected. Identify the advantage and
disadvantage of each method. Discuss with your peers.
Assume you are the marketing manager for a cellular phone

company. Identify the most effective method(s) for gathering
data to determine the company’s market share.
Develop a plan for conducting the research. Use your school

population to implement the plan. Share your plan and its
results with your learning facilitator and request his/her
feedback.

Refer to:
Kotler, P. & Armstrong, G. (2006). Principles of marketing 11th edition. Pearson
Prentice Hall
Current market position and overview. The Chartered Institute of Marketing. Retrieved July
2010 from: http://www.cim.co.uk/marketingplanningtool/tech/tech7asp
Market research methodology (2008). Retrieved July 2010 from:

http://www.marketresearchanalyst.com/wp-
content/uploads/2008/01/market_research_methodology.pdf

CONFIRM BUSINESS DIRECTION AND GOALS
“The thing to do with the future is not to forecast it but to create it. The objective of planning is
to design your desirable future and invent ways to bring it about.” – Russell Ackoff
Goal - objective that a The quotation above captures the importance of goal setting
business plans to which is considered to be the absolute first step achieving
achieve business success by some experts. This is so because goals help
an organization set its direction and shape what the business
will become.
Goals allow a company to measure how well it accomplishes its mission by providing specific
targeted levels of performance to be achieved such as sales and profits by a specific time period.
Businesses set goals to:
 Provide guidance and direction

 Allocate resources
 Define corporate culture
 Help assess performance
Goals are also set on three levels:
 Long Term – five years or more into the future

 Medium Term – one to five years
 Short term – one year
In order for an organization to keep direction and focus, it must continuously assess its business
mission and goals. In order to make this assessment you should seek the answers to these basic
questions:
 Where is the business now? How is it currently performing?

 Where does it want to go? What does it hope to achieve? Where it is aiming to be in the
future? How much money does it want to earn in the short and long-term? How large a
business is it intended to be?
 How does it intend to get from where it currently is to where it wants to be?
More precisely, what are the company’s goals concerning?
 Revenue
 Overhead costs
 Profit

Studying the company’s internal data and planning documents will help you to develop a
marketing plan for emerging opportunities. Here are some of the documents that would assist
you:
 Strategic business plan

 Marketing plans
 Operational plans
 Information on:
- Market share
- Market penetration
- Market coverage
- Sales
- Profitability
- Production time and cost
- Faults
- Warranties
- Accidents
- Complaints
CHECKPOINT:
 How important is it to confirm a company’s direction and goals

when identifying business opportunities?
ACTIVITY:
Look around in your community and identify a business owner who

would be willing to provide you with information about his/her
business.
Develop and administer a questionnaire to capture information about

a firm’s direction and goals.
Analyze and present your findings to your peers and facilitator, using
PowerPoint or similar software. Ask them for feedback.

Refer to:
Managing business. Retrieved July, 2010 from:
http://www.docstoc.com/docs/421191/Managing-Business
CONFIRM EXISTING STRUCTURE AND OPERATION OF BUSINESS
There are several aspects to the structure of a business that you would need to confirm. These
include the:
 Organizational
 Operational
 Marketing
 Financial and legal aspects
Organizational Structure - formal and informal The structure of the organization

framework of policies and rules, within which an depends on the organization’s
organization arranges its lines of authority and objectives and the strategy that it
communications, and allocates rights and duties. chooses to achieve them; the
technology and the people and
The structure of an organization determines the corporate culture. The traditional
manner and extent to which roles, power, and organization structure was the
responsibilities are delegated, controlled, and original bureaucratic one. However,
coordinated, and how information flows between more recent forms include flat,
levels of management network, matrix and virtual
organizations. An organizational
(Source: businessdictionary.com) chart illustrates the structure of
positions and lines of authority
within an organization.
To confirm the needs of the business, you should also identify the day-to-day activities that
enable the company to make a profit. Confirmation of business needs includes verification of the
company’s business operations – which, according to Wikipedia are “those ongoing recurring
activities involved in the running of a business for the purpose of producing value for the
stakeholders.”

The company’s Operational Structure is therefore concerned with the day-to-day management
of the business. It includes:
 Locations
 Methods of production and distribution
 Compensation
All the above elements are intended to meet the objective of producing a fair return on the
investment of shareholders.
Financial Structure - the way in which a company's

assets are financed, for example by short-term
borrowings, long-term debt and owners’ equity
ADVFM http://www.advfn.com/money-
words_term_1958_financial_structure.html
A company's financial structure is influenced by a number of factors, including:

 Growth rate and stability of sales
 Competitive situation (i.e., the stability of its profits):
- Asset structure
- Attitudes of its management and its lenders
Tip! It is a company’s financial structure that the basic frame of reference for analyses
concerned with financial leveraging decisions.
CHECKPOINT:
 Confirming the existing structure of a business is a multi-

dimensional task. What does it involve?
 How important is the structure of the market to the company’s

marketing structure?
Hint: You may need to conduct some independent research to be

able to answer Question 2 above.

ACTIVITY:
Follow the link below (and any similar link) which displays sample
organizational chart for a marketing department. What can you discern
about a company’s marketing structure from this chart? Make notes of
what you observe. Discuss your observations with your learning
facilitator and peers.
http://67.208.32.43/openee/Marketing-org-chart2.cfm
Investigate the types of legal business structures that exist in your

country.
Refer to:
ADVFM Retrieved July, 2010 from:
http://www.advfn.com/money-words_term_1958_financial_structure.html
BNET Business dictionary Retrieved July, 2010 from:

http://dictionary.bnet.com/definition/organization+structure.html
Business Dictionary.com Retrieved July 2010 from:

www.businessdictionary.com
Sample organization structure Retrieved July, 2010 from:

http://www.edrawsoft.com/sample-organization-structure.php
IDENTIFY AND RECORD CURRENT CAPABILITIES AND RESOURCES
Table 1: Resources and Capabilities
Competitive advantage
Capabilities
Resources
Tangible Intangible
Physical assets , financial assets Human technology, reputation, skills
Source: Wiki Answers

A firm’s competitive advantage evolves from the resources available to the firm.
Resources are:
a) Physical assets
 Land
 Equipment
 Buildings
 Cash
b) Intangible resources
 Brand name
 Market share
 Product patents
 Technological know-how
c) Capabilities
 Learning proficiencies
 Product development processes
 Fast delivery times
 Managerial abilities
Before you can make a decision about the implementation strategy, you have to first identify the
resources of the company. Imagine that a firm’s proposed strategy is to increase its delivery of a
certain product to a particular geographic location, some of the resource considerations would
be:
 whether additional delivery trucks were available to enable them to implement that
strategy
 whether the company has the resources to buy another vehicle
 whether to outsource its delivery
Analyzing a firm’s resources is an important step for a decision maker when formulating and
implementing strategy. Strong resources must support a successful strategy, and when a strategy
changes, accompanying changes in competitive advantages and, therefore, resources are usually
necessary. You should also be mindful that other variables may change and cause changes to be
necessary all around.
You will agree that the tangible resources that were listed earlier are the easiest to be evaluated,
as they are visible and quantifiable. There are two key questions that you should ask:
 What opportunities exist for economizing on finance, inventories, and fixed assets?
 What are the possibilities for employing existing assets more profitably?

Much of a company's worth comes from its intangible assets, such as: reputation, technology, or
a particular set of cultural attributes within the company. While all resources have their own
inherent value, their real value lies in the way they are used. However, to make the best use of
their resources organizations require capabilities.
These capabilities exist in a variety of forms as noted on

Organizational capability - a
the previous page and are in themselves unique resources
firm’s capacity for
that are available for deployment in different ways.
undertaking a particular
Capabilities are intangible assets and are to be found in
activity
organizational structures and ways of doing things, in
routines and in managerial processes.
They represent organizational capital in the form of the experience, skills and know-how that
enable people to do things well. It can even be observed in the way that team members work
together in a particular company environment.
Resources and capabilities need to be reviewed against two key criteria:
 Which resources and capabilities are most important in conferring sustainable

competitive advantage?
 Where are our strengths and weaknesses as compared with our competitors?
Always be mindful that it is the firm’s resources and capabilities in their various forms that
create the potential for competitive advantage. However, they must be developed, coordinated
and deployed in such a way that the company can provide goods/services more economically
than others, or be able to satisfy customer’s needs and wants better than rivals.
CHECKPOINT:
 How do you distinguish between a company’s capabilities

and resources?
 What is a firm’s competitive advantage?

ACTIVITY:
Select a public company (one that is listed on the Jamaica Stock

exchange) list its resources and capabilities. You may also want to
identify its competitive advantage.
Consult your learning facilitator for guidance, as necessary
Refer to:
Analyzing resources and capabilities. Retrieved July 2010 from:
http://www.blackwellpublishing.com/grant/files/CSAC05.pdf
Analyzing strategic internal resources and capabilities. Retrieved July 2010 from:
http://highered.mcgraw-hill.com/sites/dl/free/0070917191/91885/Sample_Chapter3.pdf
Management strategy/analyzing resources and capabilities. Retrieved July 2010 from:

http://en.wikibooks.org/wiki/Management_Strategy/Analyzing_Resources_and_Capabilities
Resources and capabilities. Retrieved July 2010 from:

www.csus.edu/indiv/h/hany/.../Resources%20and%20Capabilities.ppt
Wiki Answers Retrieved July 2010 from:

http://wiki.answers.com/Q/What_is_Business_Operations

IDENTIFY BUSINESS NEEDS IN ACCORDANCE WITH STRATEGIC PLAN
Businesses exist to accomplish goals. These usually defined in its purpose or mission statement.
However, over time a firm’s mission may become unclear as it grows, adds new products and
markets or faces new conditions. A company has to be vigilant to ensure that its activities are
aligned with its purpose. This is usually accomplished through the development of a formal
mission statement, that is, the statement of what it wants to accomplish in the larger
environment. It is said that companies with well-crafted mission statements achieve better
organizational and financial performance.
Strategic Planning - the process of developing and The purpose of strategic planning is
maintaining a strategic fit between the organization’s to find ways in which the company
goals and capabilities, and its changing marketing can best use its strengths to take
opportunities. It includes defining a clear company advantage of attractive opportunities
mission, setting supporting objectives, designing a in the environment. A strategic plan,
sound business portfolio and coordinating functional therefore, documents where the
strategies. organization is going over the next
year or more, and how it is going to
Source: Principles of Marketing (cited) get there. The strategic plan sets the
stage for the rest of the planning in
the company.
The normal procedure is for a company to prepare its annual plans, long-range plans and
strategic plans. The first two plans address the company’s current business and how to keep them
going. On the other hand, the strategic plan involves adapting the firm to take advantage of
opportunities in its constantly changing environment. The strategic planning process begins with
defining the company’s overall purpose and mission; the mission is then translated into detailed
supporting objectives that guide the entire operations of the business – the work processes,
activities, products and services.
Defining Setting Company Designing business portfolio

company Objectives and (Collection of businesses and
Mission goals products that make up the
company)
Figure 1: The Strategic Planning Process

A company’s strategic plan consists of four parts:
1. Business – Description of business, product service, target/market/customer profile,

location Business Model (how does the company operate and make money, SWOT
analysis, core competencies and competitive advantage etc.
2. Marketing – goals, objectives, strategies; customer analysis, marketing mix (4 Ps)
3. Finance – goals, objectives, strategies, financial data
4. Human resource management - personnel planning, policies, job analysis, recruitment,

etc
Note: An outline of a strategic plan is provided in Appendix 1
IDENTIFY BUSINESS NEEDS IN ACCORANCE WITH MARKETING PLAN
You have already learnt that a business will establish a set of objectives, so that a strategy can be
drafted to achieve these objectives. These objectives will then be translated into annual targets
and short/medium and long term plans. In order to avoid being unrealistic in setting their goals,
firms consider the market place and match their strengths to opportunities in the market place.
The mechanism for achieving this is the marketing plan which involves deciding on marketing
strategies that will help the company to attain its overall strategic objectives.
A marketing plan has eight elements:
1. Executive Summary – a presentation of the main goals and recommendations of the plan
for management review to help top management find the major points of the plan
quickly
2. The Challenge – a brief description of the product to be marketed, as well as the

associated goals, such as sales projections and strategic goals.
3. Situation Analysis/Current Marketing Situation - this is a comprehensive,

multifaceted analysis of various aspects of a business; it includes:
a) Company Analysis : goals, focus, culture, strengths, weaknesses
b) Customer Analysis: number, type, value, decision process, drivers
c) Competitor Analysis: market position, strength, weakness, market shares
d) Collaborators – subsidiaries, joint ventures, distributors, etc

e) Climate – Macro environmental PEST analysis

- Political and legal
- Economic environment
- Social and cultural environment
- Technological environment
f) SWOT Analysis
- Internal attributes classified as strengths and weakness
- External environment presents opportunities and threats
4. Market Segmentation – dividing market into distinct groups of buyers who have
different needs, characteristics and behaviors, who might require separate products or
marketing program (See Appendix II)
5. Alternative Marketing Strategies – A listing and discussion of alternatives that were

considered before settling on recommended strategy.
6. Selected Marketing Strategy – A discussion of what guided strategy selection and the
marketing mix decisions of product, price, place (distribution) and promotion.
 Product – decision-making should be based on product’s advantage and how

they will be leveraged. Product decisions should include: brand name, quality,
scope of product line, warranty and packaging.
 Price – issues such as pricing strategy, expected volume and decisions for a
range of pricing variables (Refer to Appendix II)
 Place ( Distribution) – includes variables such as distribution channels(direct,
retail, distributors and intermediaries), locations and others as noted in
Appendix II
 Promotion – variables include advertising, public relations, promotional
programmes, budget and projected results of the promotional activities
7. Short and long-term projections - the immediate effects, expected long-term results and
any special actions required to achieve the selected strategy. It may include forecasts of
revenues, as well as the results of a break-even analysis
8. Conclusion – a summary of all the parts of the plan

CHECKPOINT:
 What are the sources of business and market information?
 How and why is it important to determine business needs?
 What is the purpose and function of a marketing plan?
 How does a marketing plan differ from a strategic plan?
ACTIVITY:
Work in teams:
 Select a well-known, successful company (of your choice),

which trades on the Jamaica Stock Exchange. Conduct research
on its business operations, including its strategic planning
process. Share the findings of the research with your peers and
facilitator by way of a PowerPoint presentation. Include the
following:
- List of several businesses and products that are included in

the company’s portfolio.
 Assuming there is an opportunity for your company of choice to

enter the intra-island air transportation service, develop a
marketing plan for this initiative and submit to your learning
facilitator for assessment and feedback.
Refer to:
Kotler, Philip, Armstrong, Gary (2006) Principles of marketing, Eleventh Edition,
Pearson Education Inc.
Quick MBA marketing - marketing plan outline Retrieved July 2010 from:
http://www.quickmba.com/marketing/plan

READY TO PROVE YOUR COMPETENCE?
Now that you have completed this element, see whether you have fully grasped all the
components by doing the following Self-Assessment:
Checklist 1 Yes No
1. I know how to identify and confirm current performance

and market position ( ) ( )
2. I can explain how to confirm the direction and goals of the

business ( ) ( )
3. I know how to confirm existing structure and operation of

the business ( ) ( )
4. I can outline how to identify and record current capabilities

and resources ( ) ( )
5. I know how to identify business needs in accordance with

the strategic plan and marketing plan ( ) ( )
Checklist 2 Yes No
1. Business information is identified to confirm current

performance and market position ( ) ( )
2. The direction and goals of the business are confirmed ( ) ( )
3. Existing structure and operation of the business are

confirmed ( ) ( )
4. Current capabilities and resources are identified and

recorded ( ) ( )
5. Business needs are identified in accordance with the

strategic plan and the marketing plan ( ) ( )

ELEMENT 2: IDENTIFY MARKETING NEEDS
LEARNING OUTCOMES
As you go through this element, you will acquire the necessary knowledge, skills and attitudes to
identify market needs. Your learning facilitator is there to assist you with the various activities so
that upon completion you should be able to:
1. Investigate market trends and developments to identify market needs relative to the
business
2. Source comparative market information to identify possible market needs in relation
to the business
3. Identify the legal and ethical requirements of the market and their impact on the
business
4. New and emerging markets are identified and their features documented in
accordance with organization requirements
INVESTIGATE MARKET TRENDS AND DEVELOPMENTS
As a marketer, you are expected to be an innovative thinker; you must be able to think outside of
the box. How well do you do that?
Page 28 contains a news release from the International Telecommunications Union (ITU) which
examines market trends.
CHECKPOINT:
 From the news release on the following page, how

would you define the concept “market trends”?
ACTIVITY:
Read the ITU press release carefully. Identify the trends for
cellular phone usage as outlined.
Discuss with your peers and facilitator those trends that are
evident in your country and the wider implications.

ITU sees 5 billion mobile subscriptions globally in 2010
Strong global mobile cellular growth predicted across all regions and all major
markets
Barcelona, 15 February 2010 — After reaching around 4.6 billion mobile

cellular subscriptions by the end of 2009, ITU expects the number of mobile
cellular subscriptions globally to reach five billion in 2010, driven by advanced
services and handsets in developed countries and increased take-up of mobile
health services and mobile banking in the developing world.
"Even during an economic crisis, we have seen no drop in the demand for
communications services," says ITU Secretary-General Dr Hamadoun Touré,
taking part in the Mobile World Congress in Barcelona this week, "and I am
confident that we will continue to see a rapid uptake in mobile cellular services
in particular in 2010, with many more people using their phones to access the
internet."
ITU expects to see the number of mobile broadband subscriptions exceed one
billion globally during 2010, having topped 600 million by the end of 2009.
With current growth rates, web access by people on the move — via laptops and
smart mobile devices – is likely to exceed web access from desktop computers
within the next five years.
"Even the simplest, low-end mobile phone can do so much to improve

healthcare in the developing world," adds Dr Touré. "Good examples include:
sending reminder messages to patient’s phones when they have a medical
appointment, or need a pre-natal check-up, or using SMS messages to deliver
instructions on when and how to take complex medication, such as anti-
retrovirals or vaccines. It’s such a simple thing to do, and yet it saves millions of
dollars — and can help improve and even save the lives of millions of people."
Concerning mobile banking, rapid growth in mobile cellular subscriptions has

meant that there are now large numbers of people worldwide, especially in
developing countries, who have a mobile phone subscription but no bank
account — and increasingly, subscribers are using their phones for banking.
Source: http://www.itu.int/net/pressoffice/press_releases/2010/06.aspx

Now that you have completed that exercise, what was your definition of market trends? If you
wrote that it is: “The general direction of the price of an asset or market,” you would have been
correct; or if you said it is “a pattern of gradual change or a general tendency in the market
place, you would also have been correct
Trend - the general direction in Changes in the market are important because they often are
which something tends to the source of new opportunities and threats. The relevant
move, as in a market or asset. trends are industry-dependent, but some examples include:
 Changes in price sensitivity
Source: answers.com  Demand for variety
 Level of emphasis on service and support
Trends can be thought of in varying lengths including short, intermediate and long-term. If a
company can identify a trend, it can be highly profitable, as you will be able to take advantage of
it given, of course, that it aligns with its business.
Identification of market trends can by investigated by:
Trend Analysis - method of time series data (information in

sequence over time) analysis involving comparison of the same
item (for example, monthly sales revenue figures) over a
significantly long period to (1) detect general pattern of a
relationship between associated factors or variables, and (2) project
the future direction of this pattern.
Source: www.businessdictionary.com
ACTIVITY:
You are the product development manager for Innovative Cellular Inc.
and your CEO has just shared the news release from ITU with you. He
has asked you to respond by presenting a proposal based on the
emerging trends in cellular phone usage.
Prepare a proposal that identifies possible market needs with the

company’s business needs.
Hint: Be sure to support your proposal with a trend analysis of the

market in which you currently operate.
Consult your learning facilitator if necessary.

Refer to:
10:10 Brand and marketing trends for 2010. Retrieved July 2010 from:
http://www.brandkeys.com/news/press/10%20Trends%20for%202010.pdf
Trend watching newsletter. Retrieved July 2010 from:

http://www.trendwatching.com/newsletter/previous_21.html
SOURCE COMPARATIVE MARKET INFORMATION
A major part of identifying market needs will be to source comparative market information.
Market information includes:
 Market statistics and potential

 Consumer attitudes and behavior, spending power, per capita income
 Physical features - infrastructure, communications, money markets, banks etc.
 Channels of distribution - type, availability, effectiveness
 Media - availability, effectiveness and cost
 Information sources - quality, availability and cost
 Resources - money, human, materials (availability, cost, quality, development)
Sources of information include:
 Documented sources
 Human resources
 Perceived sources
Various sources of documented data are available including:
 Publications issued by governments

 International bodies
 Business, trade and professional publications
 Foreign embassies, trade missions
 Commercial newspapers
 Financial agencies
 Libraries, universities, colleges
Secondary data from such sources are relatively inexpensive to obtain and readily available.
However, you must be cautious when using this data source as it might have been collected and
manipulated for a specific purpose, therefore it may be incomplete, ambiguous or out of context.
Another reason is that such data may be corrupted by methodological and interpretive problems,
such as definitional error or sampling error.

Human sources include those gathered in face-to-face interviews from executives, sales
personnel, customers, suppliers, distributors and government officials. These are internal sources
of information.
Perception sources are "sensory" sources of information. For example, if you heard of the
opening of a new service industry such as happened with the bill payment service in Jamaica;
this could give rise to a market opportunity for another potential provider of the same service,
which it did. Direct perception can also be achieved in situations where it would be possible to
exercise all the sensory receptors: sight, taste, touch, intuition, hearing and smell. Examples
include participation in exhibitions and discussions with other organizations.
Of course, if these sources of secondary data prove inadequate to meet your needs, then it may
be necessary to conduct marketing research.
CHECKPOINT:
 How would you respond to the statement that:

“sourcing marketing information is invaluable to
determine market needs”?
ACTIVITY:
Identify potential sources of comparative information for a

named company currently operating as a cellular service
provider. The information identified should be able to be
used to determine possible market needs that the company
could address in the near future.
Prepare a proposal in which you make recommendations to

address the gap/s you uncovered. Ask your facilitator to
assess your proposal and provide you with feedback.

Refer to:
Identifying marketing opportunities through marketing information systems.
Retrieved July 2010 from: http://www.fao.org/docrep/W5973E/w5973e09.htm
LEGAL AND ETHICAL REQUIREMENTS OF THE MARKET
Corporate Social Responsibility (CSR) - a Many companies engage in questionable

concept whereby companies integrate social and marketing practices and even some
environmental concerns in their business actions that by themselves seem innocent
operations and in their interaction with their strongly affect the wider society. The sale
stakeholders on a voluntary basis. It is about of cigarettes is a popular example. In a
enterprises deciding to go beyond minimum market economy, companies should be
legal requirements … in order to address free to sell cigarettes and smokers should
societal needs.” be free to purchase them. But this private
transaction involves larger questions of
Source: European Commission public policy.
For example, medical science has proven that the practice of smoking has many health risks and
ultimately shortens the life span of those who smoke. Other people around smokers may suffer
discomfort and harm from secondhand smoke and children are potentially influenced to smoke
as a result of seeing adults particularly those they hold in high esteem, smoking. As a result of
this and other products, corporate social responsibility has become the buzz phrase of the 21st
century.
Marketing has been consistently accused of harming consumers through:
 High prices
 Deceptive practices – pricing, promotion and packaging
 High-pressure selling
 Substandard or unsafe products
 Planned obsolescence
 Poor service to disadvantaged customers
This quotation from J. M. Parsons sums up the expectations that society has of firms operating in
the marketplace. “It is the duty of the businessmen to ensure good working conditions and a
good standard of living for workers, to supply customers with goods of acceptable quality at
reasonable prices and to fulfill the obligations to the State by the prompt payment of taxes,
observance of rules, and cooperation in larger purpose of the society.”

Broken down, a firm’s social responsibilities can be said to encompass its responsibilities to it’s:
 Community
 Customers
 Shareholders
 Employees
A company’s responsibilities to its community include:
 Making the best possible or efficient use of the society’s resources

 Providing maximum possible employment opportunities
 Keeping the environment healthy and pollution free
 Contributing to the upliftment of society
 Refraining from indulging in anti-social and unethical practices
The firm’s responsibilities towards its customers include:
 Regular supply of right quality goods at the right time, right place and right (reasonable)
price
 Prompt, adequate and continuous service
 Prompt redress of grievances
 True and fair advertising and promotion
 Avoidance of unfair and unethical practices
 Compliance with the laws of the country
 Practice non-corruption of public officials
 Encourage fair trade practices
Shareholders in the organization have a right to expect the firm to exercise responsibilities such
as:
 Fair return on investment
 Safety of investment
 Steady appreciation of investment
Finally, their responsibilities to their employees include:
 Fair wages and salaries

 Safe working conditions
 Adequate benefits
 Recognition of employees and their contributions
The marketing system has also been charged with creating ‘cultural pollution.’ The continuous
onslaught of advertising; commercials which interrupt serious television and radio programmes;
pages and pages of advertisements in newspapers and magazines and billboards are seen to
pollute people’s minds with messages of materialism, sex, power or status.

Business is also seen to be wielding too much political power. Major companies support political
parties and governments against the public interest but in their own private, narrow interests.
Advertisers are often accused of holding too much power over the mass media, limiting its
freedom to report independently and objectively.
Ethics - moral principles and values that

govern the actions and decisions of an
individual or group. They serve as guidelines
on how to act rightly and justly when faced
with moral dilemmas.
Source: Principles of Marketing

http://homepages.udayton.edu/~merensjp/Mkt3
05/Chapter4.htm
There are a number of factors that influence ethical behavior including:
 Societal culture and norms

 Business culture and industry practices
 Organizational culture and expectations
 Personal moral philosophy
If you are a conscientious marketer, you face many moral dilemmas. To be clear, companies
sometimes draw up marketing ethics policies which are broad guidelines that everyone in the
organization must follow. These policies usually cover:
 Distributor relations
 Advertising standards
 Customer Service
 Pricing
 Product development
 General ethical standards
Tip! Ethics deal with personal moral principles and values. Laws are society's values and
standards that are enforceable in the courts.

CHECKPOINT:
 How would you respond to the statement, “Companies can in good

conscience do whatever the system allows?” Present both sides of the
argument.
 Why is it important to review the legal and ethical requirement of the

market when identifying marketing opportunities?
ACTIVITY:
A. You are the marketing director in your organization. You recently

learned that your company is marketing an unsafe product which has
already resulted in a few consumer injuries. Public acknowledgement
of the problem will damage the brand’s image and would require an
expensive product recall. Devise an ethically sound strategy for
handling the situation.
B. Find a local or international example and compare their strategy to
yours
C. Research companies who have been accused of harming consumers
in the following ways
 High prices
 Deceptive practices – pricing, promotion and packaging
 High-pressure selling
 Substandard or unsafe products
 Planned obsolescence
 Poor service to disadvantaged customers
Outline steps you would take as the marketing director to avoid your
company being accused of any of the tactics noted at ‘C’.
Ask your learning facilitator for guidance and feedback as required.

Refer to:
American marketing association statement of ethics. Retrieved July 2010 from:
http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx
Ethics: social responsibility marketing. Retrieved July 2010 from:

http://www.slideshare.net/bberlinn/social-responsibility-marketing
Kotler, P., Armstrong, G. (2006). Principles of marketing (11th Edition). Pearson Education Inc.
Merensi, Paul (1999) Principles of marketing, Ch. 4- Ethics and social responsibility in
marketing Retrieved July 2010 from:
http://homepages.udayton.edu/~merensjp/Mkt305/Chapter4.htm
IDENTIFY NEW AND EMERGING MARKETS AND DOCUMENT THEIR FEATURES
New and emerging markets are markets that are expected to experience significant growth or
where new opportunities exist. They may include:
 E- commerce (electronic commerce)

 Segments of the market not currently penetrated
 Export market
Ecommerce includes e-marketing and e-purchasing. E-

E-commerce - the buying and
marketing is the marketing side of e-commerce. It
selling of goods and services on
consists of a company’s efforts to communicate about,
the Internet.
promote and sell products and services over the
internet. Examples of popular companies conducting
Source: searchcio.com
business on their web sites include Dell.com. and
Amazon .com
E-commerce helps an organization by:
 Extending its reach to customers around the world

 Offering a wider variety of products
 Enticing new customers to visit a retail location

Features of ecommerce include:
 E-tailing or “virtual storefronts” on websites with online catalogues

 Gathering and use of demographic data through web contacts
 Electronic Data Interchange (EDI) – business-to-business exchange of data
 Email, instant messaging, social networking
 Secure business transactions
Web retailing with its 24-hour availability, global reach, ability to interact and provide custom
information and ordering, and multimedia prospects is a multi-billion generator of revenue for
companies that pursues it as a place for direct retail shopping.
Marketers divide the market into distinct group of buyers who have distinct needs, characteristics
or behavior and who might require separate products or marketing mixes. The market is often
segmented on the following customer characteristics:
 Geographic
 Demographic
 Psychographic
 Behavioral
You therefore have the option of examining each of these characteristics in order to identify any
new and emerging market within each of these segments. A new housing development in a non-
urbanized area is potentially a new market for a company involved in for example, the
distribution of liquid petroleum gas (cooking gas).
You would also make a similar assessment of export opportunities.
CHECKPOINT:
 Which five features of new and emerging markets can you

name?
ACTIVITY:
Select a product or service of your choice and document a minimum

of three emerging markets.

Refer to:
Henshell, John, Guide to getting started in e-commerce Retrieved July 2010 from:
http://www.business.com/directory/internet_and_online/ecommerce/
What is e-commerce? Retrieved July 2010 from:

http://searchcio.techtarget.com/sDefinition/0,,sid182_gci212029,00.html

Now that you have completed this element, check whether you have fully grasped all the
Checklist 1 Yes No
1. I can outline how to investigate market trends and

developments to identify market needs relative to the
business ( ) ( )
2. I know how to source comparative market information to

identify possible market needs in relation to the business ( ) ( )
3. I can explain how to identify the legal and ethical

requirements of the market and their impact on the business ( ) ( )
4. I know how to identify new and emerging markets and

document their features in accordance with organizational
requirements ( ) ( )
Checklist 2 Yes No
1. Market trends and developments are investigated to identify

market needs relative to the business ( ) ( )
2. Comparative market information is sourced to identify

possible market needs in relation to the business ( ) ( )
3. The legal and ethical requirements of the market and their

impact on the business are identified ( ) ( )
4. New and emerging markets are identified and their features

documented in accordance with organizational requirements ( ) ( )

ELEMENT 3: IDENTIFY MARKETING OPPORTUNITIES
LEARNING OUTCOMES
As you go through this element you will acquire the necessary knowledge, skills and attitudes to
identify marketing opportunities. Your learning facilitator is there to assist you with the various
activities, so that upon completion you should be able to:
1. Identify and describe marketing opportunities in accordance with organizational

requirements
2. Present marketing opportunities and supporting information for evaluation in accordance
with organizational requirements.
IDENTIFY AND DESCRIBE MARKETING OPPORTUNITIES
Marketing opportunities present themselves in a variety of ways. These include:
 Market penetration – trying to increase sales of a firm’s present products in its current
markets.
 Market development – trying to increase sales by selling present products in new markets
 Product development- offering new or improved products in present market
 Diversification – moving into totally different lines of business – perhaps entirely

unfamiliar products, markets, or production systems
Assessing market opportunity requires a measure of both the overall size of a market and the
competitive conditions in the market. So, in order to identify and take advantage of marketing
opportunities, marketers will segment the market.
‘Segmenting the market’ - a process The goal of segmenting is to find a market that has
of dividing the market into smaller not been thoroughly exploited – it has either been
and smaller sections until the target ignored up to that point, or there is not a lot of
market has been reached. competition. As a process for effectively identifying
market opportunities, market segmentation is
invaluable.

Figure: An Example of Segmentation
Market segmentation is usually done in one of two ways:
 Intuition/market research reveals a new market segment that has not been exploited
 Another company has successfully exploited a market niche

There are five steps in the process of discovering market opportunities including:
Correlating customer characteristics of

segments:
 How does the product/service fill the
different needs of various
demographics?
Grouping remaining benefits into segments:

 Ensure that the market segments are
Figure
Source: Microsoft.office.com
accessible and that the characteristics of
the segments are measurable
Analyzing needs in the market:

 Determine the current needs in the market
and level of satisfaction
 Determine potential needs in the market
Removing common benefits:

 Distinguish benefits of different groups of
consumers
Targeting market:
 Reaffirm business goals and direction
 Decide which markets are accessible for
your company
The process of marketing segmentation begins with the firm confirming what business it is in and the
needs it hopes to fill. Once you have confirmed its goals, you can then examine more closely the
markets that it has the possibility of serving.
In determining its target market, the firm will divide the market into:
 Consumer Market
 Business Market

Consumers will buy to fill personal or household needs and businesses will buy goods/services for
organizational usage or to resell or to transform into other products.
Note: Both markets present many marketing opportunities for the firm, although the consumer
market tends to be larger.
Have you ever considered your motivation for buying the things that you do? Research has
confirmed that consumer’s buy to fill personal or household needs. Businesses on the other hand, will
buy goods/services for organizational usage or to resell or to transform into other products.
You should note however, that both markets present many marketing opportunities for the firm,
although the consumer market tends to be larger.
Consumer Market
Consumer market - buyers

of goods and services
required for personal or
household use
The consumer market is enormous and requires segmentation for the majority of products. It is often
segmented in one of four ways:
 Geographic - region
 Demographic – age, gender, income, occupation, education, life cycle
 Psychographic - social class, personality, lifestyle, values
 Behavioral – knowledge, attitudes, uses or responses to a product
Geographic Segmentation
Does it surprise you that people’s wants and

Geographic segmentation - dividing
needs often vary depending on where they live?
markets into different geographical
Think about it. Would someone living in deep
units such as countries, parishes, cities,
rural Jamaica have the same needs and wants as
towns, or neighbourhoods.
someone who lives in the greater Kingston area?
One of the reasons for the difference is that
Source: Principles of Marketing
attitudes, likes and dislikes are often similar
(cited)
within regions.

The products bought may vary because of cultural and even historical differences.
As a result, companies segment their markets based on population concentration. Some
companies localize their products, advertising, promotion and sales efforts to fit the needs of
individual regions, cities and neighborhoods. For example, the American soup brand,
Campbell’s, sells Cajun gumbo soup in Louisiana and Mississippi and their nacho cheese soup in
Texas and California. Geographical data is available from census figures or from data collection
firms.
Demographic Segmentation
Demographic segmentation - market

segmentation strategy which divides the
target market into groups based on
variables such as: age, gender income,
occupation, education, life cycle, etc.
Source: Principles of Marketing (cited)
Demographic factors are the most popular ways of segmenting customer groups. This popularity
arises from the fact that:
 Demographics are more easily measured than most other types

 Consumer needs, wants and usage rates often vary closely with demographic variables
Consumer needs and wants change with age. Some companies use age and life-cycle
segmentation offering different products or using different marketing approaches for different
age and life-cycle groups. For example, toothbrushes for children often carry familiar cartoon
characters, while those for adults are plain.
Gender segmentation has a long history of being used in the clothing, cosmetics, toiletries and
magazine industries. The American firm Procter and Gamble is reportedly among the first to
have developed a brand of anti-perspirant (Secret) specially formulated for woman’s chemistry,
which they then packaged and advertised to reinforce the female image.
Income segmentation also has a long history of use in the marketing of products and services
such as automobiles, boats, clothing, cosmetics, financial services and travel.

Psychographic Segmentation
Psychographic segmentation -
market segmentation strategy
which divides the target market
into different groups based on
social class, lifestyle or
personality characteristics
The products that people buy reflect their lifestyles; as a result, marketers often segment their
markets by consumer lifestyles.
Behavioral Segmentation
Behavioral segmentation has the

Behavioral Segmentation - market
advantage of using variables that are
segmentation strategy used to divide the target
closely related to the product itself. It is a
market into groups according to the patterns by
fairly direct starting point for market
which the people live and spend their time and
segmentation.
money. Potential buyers of a product are
grouped on variables such as their knowledge,
attitude, use or response to the product
Some behavioral variables include:
 Benefits sought
 Usage rate
 Brand loyalty
 User status: potential, first-time, regular, etc.
 Readiness to buy
 Occasions: holidays and events that stimulate purchases
As a marketer, you will rarely limit your segmentation analysis to only one or a few variables.
Rather, you will tend to use multiple segmentation bases in an effort to identify smaller and
better defined target groups. The optimal bases on which to segment the market will depend,
however, on the particular situation and are determined by marketing research, market trends,
and managerial judgment.
Market segmentation reveals your company’s market segment opportunities. But task does not
end there. You would have to evaluate the various segments in order to recommend how many
and which segments it can best serve.

In evaluating different market segments, three factors are usually considered:
 Segment size and growth

 Segment structural attractiveness
 Company objectives and resources
You would also include:
 Collection and analysis of data on current segment sales

 Growth rates and expected profitability for various segments
 An evaluation of major structural factors that affect long-run segment attractiveness
Some factors that affect long-run segment attractiveness include:
 The presence of many strong and aggressive competitors

 The existence of many actual or potential substitute products which may limit prices and
the profits that can be earned
 The relative power of buyers – buyers with strong bargaining power relative to sellers
will try to force prices down, demand more services and set competitors against each
other
 Powerful suppliers who can control prices or reduce the quantity or quality of ordered
goods and services
Even if a segment meets all the criteria for success, the more important consideration is whether
the segments, however attractive, are in sync with the company’s objectives and resources. The
company could also lack the skills and resources needed to succeed in an attractive segment.
Therefore the organization should be encouraged to enter only segments in which it can offer
superior value and gain advantage over competitors. Therefore, you must ensure that your
presentation highlights this fit.
Beyond deciding which segments of the market it will target, a decision regarding what positions
it wants to occupy in those segments, would be in order. Positioning involves implanting the
brand’s unique benefits and differentiation in customer’s minds. Grace Foods is positioned as a
family tradition for generations. Best Dressed chicken is positioned as the best choice in broiler
meat. Positioning consists of three steps:
 Identifying a set of possible competitive advantages upon which to build that position
 Choosing the right competitive advantages
 Selecting the overall positioning strategy

Once possible markets have been segmented the task at hand becomes one of deciding which
markets to target. This is based on the research findings and opportunities identified in the early
stages of the situation analysis.
Target market – a set of buyers sharing

common needs or characteristics that the
company decides to serve.
After segmentation, certain target market options exist for the firm:
 Aim at the entire market (all segments) with a single marketing approach
 Pursue several different segments with different marketing approaches for each segment
 Focus on just one segment with a very direct marketing approach
CHECKPOINT:
 How important is it to identify marketing opportunities?
 What are the main methods used to identify such

opportunities?
ACTIVITY:
You are the product manager of a health food chain. You have been
invited to a presentation on a new natural drink (broccoli, pineapple,
sorrel lemon grass and ginger). It is your turn to ask questions. Write
five questions that you would ask the person presenting this product
idea. Each question should be targeted at one of the five segmentation
requirements.
Discuss your questions with your peers and facilitator.

Refer to:
All Business – A D &B company – Dictionary of marketing terms. Business
Definition for behavior segmentation at:

http://www.allbusiness.com/glossaries/behavior-segmentation/4966001-1.html. Retrieved July
2010
Example of segmentation. Retrieved September 2010 from: www.marketingteacher.com
Kotler, Philip, Armstrong, Gary (2006), Principles of marketing, 11th Edition. Pearson Education
Inc.
Market segmentation Retrieved July 2010:

http://www.netmba.com/marketing/market/segmentation/
Tchan, Nick (2002). Identifying marketing opportunities. Software Publications

PRESENT MARKETING OPPORTUNITIES AND SUPPORTING INFORMATION
To evaluate marketing opportunities, firms will develop and apply screening criteria:
 Quantitative - sales, profit, return on investment
 Qualitative
Some firms use GE’s (General Electrics) planning grid method to evaluate a portfolio of
opportunities in which business strengths and industry attractiveness are compared.
Business strengths include:

 Size
 Growth General Electrics (GE) Planning Grid - a tool developed
 Market share by General Electrics which maps the external industry vs.
the internal firm’s forces using multiple factors to determine
 Market position
grid placement. The grid is used to identify strategic
 Profitability margins
development of the product and evaluation of market share.
 Technology position Example:
 Image
 Pollution
 Strengths/weakness
Industry attractiveness encompasses:

 Size
 Market growth
 Price
 Market diversity
 Competitive structure
 Industry profitability Ref: www.alexandriamarketing.com/newsite/Services/
 Technical role
 Environmental factors
You will need to present the marketing opportunities identified to senior management along with
the supporting documents that the two criteria discussed above imply. The marketing plan
outlined in Appendix 2 is a recommended format.

CHECKLIST:
 Where would the supporting documents for each of the

criteria outlined for evaluating opportunities be found?
 What would you include in your presentation?
ACTIVITY:
You have been hired to explore marketing opportunities for a soft

beverage company. Using the outline in Appendix 1, develop a
marketing plan that supports one of the following types of marketing
opportunities.
 Market penetration
 Market development
 Product development
 Diversification
Ask your learning facilitator to assist you. You may have to do

additional research and or consult your notes in order to complete the
entire plan
Refer to:
Evaluating opportunities in a changing marketing environment. Retrieved July 2010
from: http://highered.mcgraw-hill.com/sites/dl/free/0073404713/540147/per04713_ch04.pdf
Evaluating the marketing opportunities for shea nut and shea nut processed products in Uganda.
Retrieved July 2010 from: http://www.foodnet.cgiar.org/Projects/Sheanut_Rep.pdf
Hall, Charles R. Plan for improved marketing Retrieved July 2010 from:
http://aggie-horticulture.tamu.edu/greenhouse/nursery/guides/econ/chmkt.html
Strategic market planning and evaluation Retrieved July 2010 from: http://www.google.com

Now that you have completed this element, check whether you have fully grasped all the
Checklist 1 Yes No
1. I know how to identify and describe marketing

opportunities in accordance with organizational
2. I can explain how to present and evaluate marketing

opportunities and supporting documents in accordance with
organizational requirements ( ) ( )
Checklist 2 Yes No
1. Marketing opportunities are identified and described in

accordance with organizational requirements ( ) ( )
2. Marketing opportunities and supporting information are

presented for evaluation in accordance with organizational

APPENDIX 1 Strategic Plan Outline
Executive Summary
Company Background & Milestones
PART I: THE BUSINESS
Vision & Mission Statements
Description of Business
Product/Service
Target Market / Customer Profile
Business Location
Business Model (how does the company operate and make money?)
Goals – Objectives – Strategies

(a) Corporate
(b) Division
(c) Functional (Departmental)
Company Performance (Financial and Strategic)
Management & Organization
SWOT (Analysis of Strengths, Weaknesses, Opportunities, Threats)
Core Competencies and Competitive Advantage
Value Chain Analysis and Benchmarking
Industry/Market Analysis
- economic characteristics
- key success factors
- trends and opportunities
- 5 forces analysis (Porter)

Competitor Analysis
- Strategic Group analysis
- Competitive Strength Assessment (based on key success factors)
- Generic Strategy analysis (Porter)
PART II: MARKETING
1. Marketing Goals – Objectives – Strategies

2. Customer Analysis
3. Marketing Mix (4 P’s)
PART III: FINANCE
1. Financial Goals – Objectives – Strategies
2. Financial Data
(a) Sources and applications of funding
(b) Capital equipment and supply list
(c) Balance sheet
(d) Breakeven analysis
(e) Income projections (profit & loss statements)
- Three-year summary
- Detail by month, first year
- Detail by quarters, second and third years
- Assumptions upon which projections were based
(f) Cash flow projections
- Three-year summary
- Detail by month, first year
- Detail by quarters, second and third years
- Assumptions upon which projections were based
(g) Historical Financial Reports for Existing Businesses
- Balance Sheets for past 3 years
- Income Statements for past 3 years
- Tax Returns

PART IV: HUMAN RESOURCE MANAGEMENT
 Personnel Planning
 Personnel Policies
 Job Analysis
 Recruitment
 Training
 Management Development
 Performance Appraisal
 Compensation and Benefits
OTHER POSSIBLE AREAS FOR STUDY INCLUDE:
ACCOUNTING
INFORMATION SYSTEMS
MANUFACTURING & PRODUCTION
PART V: SUPPORTING DOCUMENTS
 Copy of licenses
 Copy of lease or purchase agreement
 Copies of contracts and other legal documents
 Copy of resumes of all principals
 Copies of letters of intent from suppliers, etc.
 Policy manuals
 Job descriptions
 Credit reports
 Letters of reference
 For franchised businesses, a copy of franchise contract and all supporting documents
provided by the franchisor
 Anything else relevant to the plan!

APPENDIX II Marketing Plan Outline
I. Executive Summary
A high-level summary of the marketing plan.
II. The Challenge
Brief description of product to be marketed and associated goals, such as sales figures and
strategic goals.
III. Situation Analysis
Company Analysis
 Goals
 Focus
 Culture
 Strengths
 Weaknesses
 Market share
Customer Analysis
 Number
 Type
 Value drivers
 Decision process
 Concentration of customer base for particular products
Competitor Analysis
 Market position
 Strengths
 Weaknesses
 Market shares
Collaborators
 Subsidiaries, joint ventures, and distributors, etc.

Climate
Macro-environmental PEST analysis:
 Political and legal environment

 Economic environment
 Social and cultural environment
 Technological environment
SWOT Analysis
A SWOT analysis of the business environment can be performed by organizing the

environmental factors as follows:
 The firm's internal attributes can be classed as strengths and weaknesses.

 The external environment presents opportunities and threats.
IV. Market Segmentation
Present a description of the market segmentation as follows:
Segment 1
 Description
 Percent of sales
 What they want
 How they use product
 Support requirements
 How to reach them
 Price sensitivity
 Segment 2
V. Alternative Marketing Strategies
List and discuss the alternatives that were considered before arriving at the recommended
strategy. Alternatives might include discontinuing a product, re-branding, positioning as a
premium or value product, etc.
VI. Selected Marketing Strategy
Discuss why the strategy was selected, then the marketing mix decisions (4 P's) of product, price,
place (distribution), and promotion.

Product
The product decisions should consider the product's advantages and how they will be leveraged.
Product decisions should include:
 Brand name
 Quality
 Scope of product line
 Warranty
 Packaging
Price
Discuss pricing strategy, expected volume, and decisions for the following pricing variables:
 List price
 Discounts
 Bundling
 Payment terms and financing options
 Leasing options
Distribution (Place)
Decision variables include:
 Distribution channels, such as direct, retail, distributors & intermediates

 Motivating the channel - for example, distributor margins
 Criteria for evaluating distributors
 Locations
 Logistics, including transportation, warehousing, and order fulfilment
Promotion
 Advertising, including how much and which media.

 Public relations
 Promotional programs
 Budget; determine break-even point for any additional spending
 Projected results of the promotional programs

VII. Short & Long-Term Projections
The selected strategy's immediate effects, expected long-term results, and any special actions
required to achieve them. This section may include forecasts of revenues and expenses as well as
the results of a break-even analysis.
VIII. Conclusion
Summarize all of the above.
Source: Marketing Plan Overview

http://www.quickmba.com/marketing/plan/

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LG - BSBMKP0322A IDENTIFY MARKETING OPPORTUNITIES

HEART TRUST/NATIONAL TRAINING AGENCY

Learning Management Services Department

*** 2010 ***

Version 1 - LRDU – JUL. 10

Element 1: Confirm business needs…………………………………………………… 7

Self Assessment Checklist…………………………………………………………... 26

Element 2: Identify marketing needs………………………………………………….. 27

Self Assessment Checklist…………………………………………………………... 39

Element 3: Identify marketing opportunities…………………………………………. 40

Self Assessment Checklist…………………………………………………………... 51

Version 1 - LRDU – JUL. 10

This Competency Unit

Element 1: Confirm business needs

Element 2: Identify market needs

Element 3: Identify marketing opportunities

Appendix 1: Strategic Plan Outline

Appendix 11: Marketing Plan Outline

Version 1 - LRDU – JUL. 10 1 1

Before you start

Before you start this Learner Guide, you need to:

c. Ensure that your learning resources are available.

e. Plan your learning programme (see below)

f. Understand how to use this Learner Guide (see below)

Planning your learning programme

Version 1 - LRDU – JUL. 10 2 2

Element 1 Confirm business needs Yes No

1. I can identify business information to confirm current

2. I can confirm direction and goals of the business ( ) ( )

3. I can confirm existing structure and operation of the business ( ) ( )

4. I can outline how to identify and record current capabilities

5. I can identify business needs in accordance with the strategic

Element 2 Identify market needs Yes No

1. I can investigate market trends and developments to identify

2. I can source comparative market information to identify

3. I can identify the legal and ethical requirements of the

4. I can identify new and emerging markets and document their

Version 1 - LRDU – JUL. 10 3 3

Element 3 Identify marketing opportunities Yes No

1. I can identify and describe marketing opportunities in

2. I can present marketing opportunities and supporting

How did you do?

How to use this Learner Guide

We suggest that you:

 Go through the sections/elements as they are presented (starting at Section 1)

Version 1 - LRDU – JUL. 10 4 4

Complete Assessment Exercise

 Complete the self-assessment checklist at the end of each section or element

Version 1 - LRDU – JUL. 10 5 5

Using the Computer and Other Resources

Version 1 - LRDU – JUL. 10 6 6

ELEMENT 1: CONFIRM BUSINESS NEEDS

1. Identify business information to confirm current performance and market position

IDENTIFY BUSINESS INFORMATION

Marketing - the activity, set of institutions, and

Version 1 - LRDU – JUL. 10 7 7

 What is a marketing opportunity?

Marketing opportunities are identified by reviewing questions such as:

* 2010 *