Managing finances and marketing principles

Qualification

Unit number, title and level

BTEC Level 5 HND in Business

Unit 4: Marketing Principles

Level: 4

Student name and ID number

Assessor name

Imad Guenane

Date issued

Completion date

Submitted on

12th May 2014

18th July 2014 12:00 midday

Assignment title

Ben Sherman Marketing Mix

Learning Outcome

Learning Outcome

Assessment Criteria

In this assessment you will have the opportunity to present evidence that shows you are able to:

Task no.

Evidence

(Page no)

LO1

Understand the concept and process of marketing

1.1

Explain the various elements of the marketing process

1.2

Evaluate the benefits and costs of a marketing orientation for a selected organisation

LO2

Be able to use the concepts of

segmentation,

targeting and

positioning

2.1

Show macro and micro environmental factors which influence marketing decisions

2.2

Propose segmentation criteria to be used for products in different markets

2.3

Choose a targeting strategy for a selected product/service

2.4

Demonstrate how buyer behaviour affects

marketing activities in different buying situations

2.5

Propose new positioning for a selected product/service

LO3

Understand the

individual elements of

the extended

marketing mix

3.1

Explain how products are developed to sustain competitive advantage

3.2

Explain how distribution is arranged to provide customer convenience

3.3

Explain how prices are set to reflect an organisation’s objectives and market conditions

3.4

Illustrate how promotional activity is integrated to achieve marketing objectives

3.5

Analyse the additional elements of the extended marketing mix

LO4

Be able to use the marketing mix in

different contexts

4.1

Plan marketing mixes for two different segments in consumer markets

4.2

Illustrate differences in marketing products and services to businesses rather than consumers

4.3

Show how and why international marketing differs from domestic marketing

Instructions

· An electronic copy of your assessment must be fully uploaded by the deadline date and time.

· You must submit one single PDF or MS Office Word document. Any relevant images or screenshots must be included within the same MS Office Word or PDF document.

· The last version you upload will be the one that is marked. Your paper will be marked if you have indicated this as your final submission.

· Review the mitigating circumstances policy for information relating to extensions.

· The file size must not exceed 20MB.

· Answer the criteria in order, clearly indicating the pass criteria number.

· Ensure that all work has been proof-read and checked prior to submission.

· Ensure that the layout of your documents are in a professional format with font style Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing 1.5 and justified.

· Use the Harvard referencing system; otherwise it will be considered as plagiarised work.

· Ensure that you back-up your work regularly and apply version control to your documents.

· Ensure that any file you upload is virus-free, not corrupted and not protected by a password otherwise it will be treated as a non-submission.

· You must NOT submit a paper copy or email of this assessment to any member of staff at LSST.

· Your work must be original with the appropriate referencing

Student Name

_____________________

Student ID:

__________________

Signature:

_____________________

Date :

__________________

In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades

Grade descriptor

Indicative characteristic/s

Contextualisation

M1 Identify and apply strategies to find appropriate solutions

Effective judgements have been made.

An effective approach to study and research has been applied.

To achieve M1, you need to identify and apply strategies that have been explored in 1.1 and explain the various elements of the marketing mix. Include a demonstration that critical judgement and an effective approach to the case study and research has been applied. (Task 1)

OR

To achieve M1, you need to show that effective judgments have been made in identifying and applying a targeting strategy for a selected product or service within Ben Sherman (Task 2)

M2 Select / design and apply appropriate methods / techniques

Appropriate learning methods/techniques have been applied.

To achieve M2, you need to demonstrate how macro and micro environmental factors influence marketing decisions. (Task 2)

OR

To achieve M2, you need to select and apply one of the elements within the marketing process to the Ben Sherman company. (Task 1)

OR

To achieve M2, you need to discuss how you would select and apply appropriate methods within Ben Sherman in order to sustain a competitive advantage. Use a range of sources such as textbooks, academic articles, case studies and reliable internet sources, apply Harvard Referencing throughout. (Task 3)

M3 Present and communicate appropriate findings

Coherent, logical development of principles/concepts for the intended audience.

Communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used.

To achieve M3, demonstrate how Ben Sherman uses prices to reflect its organisational objectives. Present these finding in a structured and professional report. (Task 3)

OR

To achieve M3, use an appropriate and structured method to communicate how the marketing of Ben Sherman products have to be marketed differently in an international market compared to the domestic market. Your audience for this communication is Managing Directors. (Task 4)

D1 Use critical reflection to evaluate own work and justify valid conclusions

Conclusions have been arrived through synthesis of ideas and have been justified.

Realistic improvements have been proposed against defined characteristics for success.

To achieve D1, critically evaluate the benefits and costs of market orientation for Ben Sherman. Form a conclusion and justify your position. (Task 1)

OR

You need to critically evaluate how buyer behaviour affects marketing activities in two different buying situations within Ben Sherman. (Task 2)

D2 Take responsibility for managing and organising activities

Activities have been managed.

To achieve D2. You work as a marketing director for Ben Sherman and have been asked to investigate how you can best organise the promotional activities of (Task 2)

D3 Demonstrate convergent /lateral / creative thinking

Convergent and lateral thinking have been applied.

Problems have been solved.

To achieve D3 you will need to demonstrate creative thinking by illustrating how promotional activity is aligned to achieve marketing objectives. Please support your answer with examples and /or the organisation of your choice. (Task 3)

OR

You work as a newly appointed Marketing Manager for an organisation of your choice. You have been asked to convince the board on the benefits of global investments.

Present your response using 10-15 slides (excluding references and appendices). You are expected to address the following issues:

· The importance of global expansion

· What factors you need to take into consideration when marketing globally

· The marketing tactics and mix that may be appropriate for your chosen product/service. (Task 4)

Assignment brief

Unit number, title and level

Unit 4: Marketing Principles

Level : 4

Qualification

Pearson BTEC Level 5 HND Diploma in Business

Date issued

12th May 2014

Completion date

18th July 2014 12:00 midday

Assessor

Imad Guenane

Assignment title

Ben Sherman Marketing Mix

Purpose of this assignment

This is a broad-based unit which gives learners the opportunity to apply the key principles of marketing. Firstly, the unit looks at the definitions of marketing and what is meant by a marketing orientation and the marketing process. Next, learners consider the use of environmental analysis in marketing and carry out their own analyses at both macro and micro levels. They will also investigate the importance of market segmentation and how this leads to the identification and full specification of target groups. Learners then consider buyer behaviour and positioning.

The unit looks at the main elements of both the original and the extended marketing mix. This includes an introduction to the concept of the product life cycle, new product development, pricing strategies, distribution options and the promotion mix. Finally, learners will develop their own marketing mixes to meet the needs of different target groups. This includes considering the differences when marketing services as opposed to goods. A range of other contexts is examined including marketing to businesses instead of consumers and the development of international markets.

Scenario:

Ben Sherman is a globally recognised lifestyle brand.

It has grown from its business beginnings in quality

shirts in Brighton in 1963 and is now sold in 35

countries around the world. It has expanded into

the USA, Europe, and Australasia. In 2004,

Ben Sherman was acquired by the American-based

company, Oxford Industries. This group is an

international apparel design, sourcing and marketing

company that features a diverse portfolio of owned

and licensed lifestyle brands. Throughout the years

high profile customers include musicians, models, actors and bands, such as Blur, Oasis and the Kaiser Chiefs. The growth of the brand can be traced through changes in musical taste and this is a key part of Ben Sherman's marketing strategy.

As a person reading this, you could be a central market segment of Ben Sherman's target market. A market segment is a group of people with similar needs or characteristics, such as age, gender or lifestyle. For example, you may like music, you may like fashion and you may be willing to spend money on top brands that deliver the quality and image that you want. 

As the company founder Ben Sherman said in 1963: 'Looking good isn’t important, it's everything’.

Ben Sherman has developed a balanced marketing mix. This is often referred to as the 4 P”s - product, price, promotion and place. By getting the mix right, the company ensures that its products reach the market segments it is aiming the brand at. This approach helps the business remain competitive and extends its market share and influence.

The marketing mix is like a cake recipe. Most cakes need the basic ingredients of eggs, flour, sugar and milk. Ben Sherman chooses the right combination of each element to satisfy different customers' needs.

Regarding the product mix; Ben Sherman has to decide whether to:

· Create a product and then market it to target customers (product-orientated) or

· Find out what the market wants and then provide it (market-orientated)

To achieve both, the company produces a wide product range that appeals to all its target market segments. The range includes casual clothes, formal wear, denim, footwear and lifestyle accessories, such as underwear, watches, bags, belts and fragrances.

A strong brand image ties the product range together. Each collection has an umbrella theme. In 2007, the product theme was 'This Sporting Life' and the marketing theme was 'British music and style'.

In the price mix, Ben Sherman has to assess which markets its products are aimed at and set a price to match. There are a number of pricing strategies that a business can use for its products including:

· Cost based pricing where the selling price is set to cover the cost of manufacture.

· Market orientated pricing.

Market orientated pricing covers several different approaches:

· Market penetration, where a new product is priced low to attract a high volume of sales

· Market skimming where a new product has premium pricing to give high revenues whilst the product is unique in the market

· Premium pricing, where there is a uniqueness and exclusiveness about the product so that it can command a high price

· Economy pricing, which tends to be for no-frills, basic products, where the cost of manufacture and marketing are kept to a minimum.

In General, Ben Sherman produces mostly medium-price range products. Its position in the market for clothing is shown on the product map diagram. The mix of product and price is clearly evident here. These brands are identifiable by their quality and style.

Place and distribution Ben Sherman limits where its products are sold and keeps a tight rein on how they are sold and its distribution channels including (its own stores, independent fashion stores and department stores. This creates a unique Ben Sherman experience wherever customers buy its products.

Promotion: Ben Sherman uses both above-the-line and below-the-line promotion to help inform customers about its products. Through this information, it increases the customers' desire to buy its products. The 'above-the-line', which is using independent media to reach a wide audience easily, but over which the company may have limited control, for example, magazine advertising. This reaches a mass audience but can be hard to measure its impact. The 'below-the-line', which uses media over which the business has control, for example direct mailing. This type of promotion can be more cost-effective and give more measurable response rates. Ben Sherman promotion activities includes: direct mail, exhibitions or events, sales promotions, public relations, sponsorship product placement and branding.

In conclusion, Ben Sherman's continuing global growth and high profile in music and fashion demonstrates that, its responsiveness to changing tastes in fashion and music throughout the last fifty years has provided it with a unique heritage of quality, personality and style. This has made Ben Sherman into a great British icon, reflecting British culture as it does business across the world.

Reference:

The Times 100 (1995-2014) Using the marketing mix in the fashion industry. A Ben Sherman Case Study. [Online]. Available from: http://businesscasestudies.co.uk/ben-sherman/using-the-marketing-mix-in-the-fashion-industry/promotion.html#axzz30vYB9kQS The Times 100.

McKenna, N. (2011) The Marketing Mix and Ben Sherman Case Study. Analyse Promotional Techniques. [Online]. Available from: http://fashionbrandmanagement1.blogspot.co.uk/2011/11/marketing-mix.html Mc Kenna.

Task 1: Understand the concept and process of marketing

(This tasks offers you an opportunity to achieve L.O.1: 1.1, 1.2 and M1, M2 & D1)

The marketing process consists of various elements. Explain the marketing process. (1.1)

Guidelines

You are required to include the following in formulating you answer:

Market audit, integrated marketing, environmental analysis, SWOT Analysis and marketing objective.

Completion date: 19th May 2014

Businesses can develop new products based on a marketing orientated approach. What benefits and costs are associated with this approach for Ben Sherman? (1.2)

Guidelines

You are required to include the following in formulating your answer: Desired quality, service and customer care, relationship marketing, customer retention, customer profitability and costs of too narrow marketing positioning.

Completion date: 23rd May 2014

To achieve M1: You need to identify and apply strategies that have been explored in 1.1 and explain the various elements of the marketing mix. Include a demonstration that critical judgement and an effective approach to the case study and research has been applied.

To achieve M2: You need to select and apply one of the elements within the marketing process to the Ben Sherman company.

To achieve D1: Critically evaluate the benefits and costs of market orientation for Ben Sherman. Form a conclusion and justify your position.

Completion date: 23rd May 2014

Looking at market segmentation principles, propose segmentation criteria to be used in Ben Sherman for its products in different markets. (2.2)

Guidelines

You are required to include one of following in formulating your answer: Geographic, demographic, psychographic and behavioural and evaluation of segments.

Completion date: 30th May 2014

Select a product/service from the Ben Sherman range and propose an appropriate targeting strategy to help boost sales for Ben Sherman. (2.3)

Guidelines

You are required to include at least one of the following in formulating your answer:

Undifferentiated (mass) marketing, differentiated (segmented marketing), concentrated (niche) marketing and Micro marketing-(local or individual marketing).

Completion date: 30th May 2014

Buyer behaviour affects an organisation’s marketing activities. Provide two examples of different buying situations within Ben Sherman. (2.4)

Guidelines

You are required to include two of the following in formulating your answer:

Environmental influences, personal variables-demographic, sociological, psychological, motivation, social factors, physiological stimuli, attitudes, other lifestyle and life cycle variables, consumer and organisational buying.

Completion date: 6th June 2014

Propose new positioning for one product/service within Ben Sherman. (2.5)

Guidelines

State how the new positioning strategy influences the marketing mix factors, value positioning and positioning statement.

Completion date: 6th June 2014

To achieve M1: You need to show that effective judgments have been made in identifying and applying a targeting strategy for a selected product or service within Ben Sherman.

To achieve D1: You need to critically evaluate how buyer behaviour affects marketing activities in two different buying situations within Ben Sherman.

Task 3 Understand the individual elements of the extended marketing mix

(This tasks offers you an opportunity to achieve L.O.3: 3.1, 3.2, 3.3, 3.4, 3.5 and M2, M3, D2 & D3)

Certain products develop and sustain a competitive advantage over a long period of time. Explain how one of Ben Sherman’s products has achieved competitive advantage. (3.1)

Guidelines

You are required to include the following in formulating your answer: Explain how one of Ben Sherman’s products has achieved competitive advantage including how they have used research and development and new product development.

Completion date: 6th June 2014

Customer convenience is a very important concept in marketing. Using the case study, explain how Ben Sherman’s distribution is arranged in a particular way to facilitate this. (3.2)

Guidelines

You need to include the following in formulating your answer:

Customer convenience and availability, integration and distribution systems, franchising, physical distribution management and logistics and channel selection.

Completion date:13th June 2014

An organisation’s objectives dictate how prices are set to balance and match with market conditions. Using’ Ben Sherman illustrate how this works. (3.3)

Guidelines

You are required to include the following in formulating your answer:

Pricing strategies, psychological costs and discriminatory and ethical issues

Completion date: 13th June 2014

Promotional activity is essential to achieve an organisation’s marketing objectives. Using Ben Sherman, show how promotional activity is integrated into marketing objectives. (3.4)

Guidelines

You are required to include some of the following in formulating your answer: Effective integrated communication process (SOSTT +4Ms.), promotional mix elements; push and pull strategies; advertising above and below the line including packaging, public relations and sponsorship, sales promotion, direct marketing, personal selling; branding, internet and online marketing.

Completion date: 20th June 2014

The marketing mix is an important concept. Analyse the additional elements of the extended marketing mix? (3.5)

Guidelines

You are required to include the following in formulating your answer:

Concept of the extended marketing mix, significance of the soft elements of marketing (people, physical evidence and process management).

Completion date: 20th June 2014

To achieve M2: You need to discuss how you would select and apply appropriate methods within Ben Sherman in order to sustain a competitive advantage. Use a range of sources such as textbooks, academic articles, case studies and reliable internet sources, apply Harvard Referencing throughout.

To achieve M3: You will need to demonstrate how Ben Sherman uses prices to reflect its organisational objectives. Present these finding in a structured and professional report.

To achieve D2: You work as a marketing director for Ben Sherman and have been asked to investigate how you can best organise the promotional activities of :

1. Your own stores

2. Independent fashions stores

3. Department stores

To achieve D3: You will need to demonstrate creative thinking by illustrating how promotional activity is aligned to achieve marketing objectives. Please support your answer with examples and /or an organisation of your choice.

Task 4 (This tasks offers you an opportunity to achieve L.O.4: 4.1, 4.2, 4.3 and M3, D3) Be able to use marketing mix in different contexts.

Propose two separate marketing mixes for two different segments in consumer markets, using products/services from Ben Sherman. (4.1)

Guidelines

You need to include the following in formulating your answer:

Marketing mix (product, place, price and promotion).

Completion date: 27th June 2014

Marketing tactics used on a consumer is different to the marking tactics used for a business. Using Ben Sherman, illustrate the differences in marketing products and services to businesses rather than consumers. (4.2)

Guidelines

You are required to consider the following in formulating your answer:

Differences of organisational and consumer markets for the Ben Sherman company.

Completion date: 27th June 2014

Marketing a product/service domestically would employ slightly different methods than those used for international marketing. Explain this using Ben Sherman as an example. (4.3)

Guidelines

You are required to include some of the following in formulating your answer:

Globalisation, culturally differences, standardisation versus adaptation, regional integration (EU, NAFTA), benefits and risk; markets attractiveness and international marketing mix strategies.

Completion date: 4th July 2014

To achieve M3: Use an appropriate and structured method to communicate how the marketing of Ben Sherman products have to be marketed differently in an international market compared to the domestic market. Your audience for this communication is Managing Directors.

To achieve D3: You work as a newly appointed Marketing Manager for an organisation of your choice. You have been asked to convince the board on the benefits of global investments.

Present your response using 10-15 slides (excluding references and appendices). You are expected to address the following issues:

· The importance of global expansion

· What factors you need to take into consideration when marketing globally

· The marketing tactics and mix that may be appropriate for your chosen product/service.

Task 1 (L.O.1: L.O.1: 1.1, 1.2 and M1, M2 & D1)

Please type your answer here

Task 2 (L.O.2: 2.1, 2.2, 2.3, 2.4, 2.5 and M1 & D1)

Please type your answer here

Task 3 (L.O.3: 3.1, 3.2, 3.3, 3.4, 3.5 and M2, M3, D2 & D3)

Please type your answer here

Task 4 (L.O.4: 4.1, 4.2, 4.3 and M3 & D3)

Please type your answer here