Unit 3.24 Marketing Principles and TechniquesAssignment submitted by: Maria V.

Table of ContentsTask 1 –What is marketing?.....................................................................................................4

Marketing:.............................................................................................................................41.1 Marketing activities.........................................................................................................4

Research:..........................................................................................................................4Customer profiling/segmentation:.....................................................................................4Targeting:..........................................................................................................................4Advertising/promotion:......................................................................................................4Pricing:..............................................................................................................................4Public relations (PR):........................................................................................................5Managing social media:....................................................................................................5

1.2 Market segmentation......................................................................................................5Socio economic:................................................................................................................5Behavioural segmentation:...............................................................................................5Demographic.....................................................................................................................5Psychographic..................................................................................................................5Geographical segmentation:.............................................................................................5

1.3 Marketing Mix................................................................................................................5Product:.............................................................................................................................5Price..................................................................................................................................5Promotion..........................................................................................................................6Place:................................................................................................................................6

Task 2 –Market research.........................................................................................................62.1 Aims of research and market analysis............................................................................6

Research aims at macro and micro levels:.......................................................................6Identify the market/consumer:...........................................................................................6Identify customer needs:...................................................................................................6Identify problems:..............................................................................................................6Product or service improvements:....................................................................................6Exploring new markets:.....................................................................................................6Monitor existing markets:..................................................................................................6

2.2 Market research methods...............................................................................................7

Primary research...............................................................................................................7Secondary Research........................................................................................................7Analysis of Qualitative & Quantitative data.......................................................................7

Research tools......................................................................................................................7Interviews..........................................................................................................................7Questionnaires..................................................................................................................7Focus groups....................................................................................................................7

2.3 Market analysis tools & techniques................................................................................7Micro analysis techniques....................................................................................................7

SWOT analysis.................................................................................................................8Macro analysis techniques...................................................................................................8

PESTLE Analysis..............................................................................................................8Competitor Analysis..........................................................................................................8

Task 3 – E-marketing...............................................................................................................84.2 E-Marketing methods.....................................................................................................8

Search engine marketing:.................................................................................................8Pay per click:.....................................................................................................................8Search engine optimisation:..............................................................................................8On line advertising:...........................................................................................................9Viral marketing:.................................................................................................................9Email marketing:...............................................................................................................9

4.2 Online image management............................................................................................9On line reputation management:.......................................................................................9Use of Social Media..........................................................................................................9

Task 4 – Applying your learning...............................................................................................93.1 Use of market analysis techniques...............................................................................103.2 Interpretation of market research findings and market analysis...................................103.3 Presentation of market research findings.....................................................................10

References.............................................................................................................................11

Task 1 –What is marketing?Marketing is a basic business work for most for-benefit and non-benefit organizations. Showcasing is a wide procedure that incorporates look into, item outline and advancement, advancement and client benefit. A great part of the promoting capacity revolves around a modest bunch or centre standards, techniques and strategies.

Marketing:I explain to my team that marketing are exercises of an organization related with purchasing and offering an item or administration. Marketing is related to promoting, offering and selling items to individuals. Marketing is everything a company does to acquire customers and maintain a relationship with them.

1.1 Marketing activitiesMarketing activities is the process of promoting a business with different methods, such as viral marketing, word of mouth, online presence, social media, loyalty programs, print advertising, radio advertising, tv adverts, banners placed on different places of the city, plus advertising on taxis and offer social events. Special exercises may incorporate publicizing, individual offering, deals advancements, advertising, coordinate promoting, sponsorship and guerrilla showcasing. Advertisers must know that purchasers relate an item's cost and dispersion with its quality, and would be judicious to consider when contriving the general display technique.

An example of marketing activities, are adverts that are show on TV, Facebook ads and Google ads that we see them, while surfing online. Here is a video ad promoting Waitrose food company, where they present Waitrose products in a beautiful way, to encourage customers to shop at Waitrose:https://www.youtube.com/watch?v=I-XFIhHVyss

Research:Marketing research is, the procedure or set of procedures that connect the makers, clients, and end clients to the advertiser through data used to distinguish and characterize display openings and issues; create, refine, and assess showcasing activities; screen showcasing execution;

and enhance comprehension of advertising as a procedure. Promoting research determines the data required to address these issues, outlines the strategy for gathering data, oversees and executes the information accumulation handle, investigates the outcomes, and conveys the discoveries and their suggestions.

Customer profiling/segmentation:Client segmentation is the act of separating a client base into gatherings of people that are comparative in particular routes pertinent to showcasing, for example, age, sexual orientation, interests, ways of managing money, et cetera.

Utilizing division enables organizations to target bunches adequately and distribute showcasing assets to best impact.

Targeting:A target market is the market an organization needs to pitch its items and administrations to, and it incorporates a focused, on set of clients for whom it coordinates its promoting endeavours. Distinguishing the objective market is a fundamental stride in the improvement of a promoting arrangement. An objective market can be isolated from the market all in all by geology, purchasing force, socioeconomics and psychographics.

Advertising/promotion:

Advertising is a sound or visual type of showcasing correspondence that utilizes a straightforwardly supported, nonpersonal message to advance or offer an item, benefit or idea. Patrons of publicizing are frequently organizations who wish to advance their items or administrations. Advertising is differentiated from public relations in that an advertiser usually pays for and has control over the message.

Pricing:Pricing for advertising is a budget set by a business to choose the best advertising option and cost effective.

Public relations (PR):Public relations are in charge to make and keep up goodwill of an association's different publics (clients, representatives, financial specialists, providers, and so forth.), generally through exposure and other nonpaid types of correspondence. These endeavours may likewise incorporate support of expressions, beneficent causes, training, donning occasions, and other metro engagements.

Managing social media:

Managing social media focuses on observing, contributing, separating, measuring and generally managing the web-based social networking nearness of a brand, item, individual or enterprise.

1.2 Market segmentationMarket segmentation is the way toward partitioning a market of potential clients into gatherings, or fragments, in light of various attributes. The portions made are made out of customers who will react comparably to promoting systems and who share qualities, for example, comparable interests, needs, or areas.Coffee shops attract a large market segmentation, usually people up to 20’s, single or couples.Because coffee shops are offering fresh ice juice, is attracting children with parents too, in other words, 90% of population in a city will prefer to eat and drink coffee or enjoy a fresh ice juice.

Socio economic:Field of study that examines social and economic factors to better understand how the combination of both influences something. In general, it analyses how societies progress, stagnate, or regress because of their local or regional economy, or the global economy.

Behavioural segmentation:A sort of market division in view of contrasts in the utilization conduct of various gatherings of shoppers, considering their ways of life, examples of purchasing and utilizing, examples of investing cash and energy, and comparable components. One of the five regular division procedures, its goal is to characterize particular specialties that require exclusively customized advancement.

Demographic:Demographics is a study of population, based on analysis of as age, race and sex, among others. Demographics are used by Governments, corporations and non-government organizations to learn more about a population's characteristics for different purposes, including policy development and economic market research. For example, private pension companies want to know how many people at or nearing retirement age and many of them can afford to have private pension.

Psychographic:Psychographics is the investigation of identity, qualities, assessments, demeanours, premiums, and lifestyles. In light of the fact that this range of research concentrates on exercises, premiums, and feelings, psychographic elements are additionally called AIO factors. Psychographic investigations of people or groups can be significant in the fields of showcasing, socioeconomics, supposition research, expectation, and social research as a rule. They can be appeared differently in relation to statistic factors, (for example, age and sexual orientation), behavioural factors, (for example, use rate or steadfastness), and hierarchical socioeconomics factors (now and then called firmographic factors, for example, industry, number of workers, and utilitarian zone.

Geographical segmentation:Geographical segmentation is when a business divides its market on the basis of geography. There are few types of geographical segmentation. Market can be divided by geographical areas, for example: by city, county, state, region, country, or international.

1.3Marketing MixMarketing mix, is a set of decisions that business owners need to be considered before they decide to introduce a new product. Marketing mix include: product, price, place, promotion They help an industry in making strategic decisions required for the smooth running of an organization. 

Product: In a business, product is a material or non-material product, such as digital products.Products for business that I give example are: coffee cups, sandwiches, water, juice or others.In other business that offer digital products, this can be, e-books, online courses, memberships etc.

PricePrice is the sum a firm will charge a client for offering the item to him. In this case, the coffee shop is charging a fee for a cup of coffee, or other product from the coffee shop.

PromotionThis portrays of the considerable number of correspondences that a promoter can use in the commercial centre to raise the attention to the item, alongside its advantages to the pointed section. Promotion has four unique components: open connection, publicizing, deals advancement and individual offering. Another viable and shabby method for advancing an item is web. Promotion, is better begun before the item is presented in the market since it expands the enthusiasm of the clients and gets him anxious to discover what the thing is.

Place: Place, is the area where a thing can be purchased and it concentrates more on the accessibility of a thing, at the coveted place and time.These spots may be virtual stores, for example, e-shopping centres and e-showcase, on the web while physical stores resemble departmental stores and markets.

Task 2 –Market research I carry a survey to find the objective market and record conclusions and other contribution from customers in regards to enthusiasm for the item. Write down findings of market research and present it to organisation.

2.1 Aims of research and market analysis Market research has the purpose to collect data on customers and potential customers. This process, help the business to make their decisions. Research and market analysis are a vital part, because reduces the risks involved in making these decisions.

Research aims at macro and micro levels:Level of research is utilized as a part of the sociologies to indicate the area, size, or size of an examination target. Micro-level research looks at small-scale interactions between individuals, such as conversation or group dynamics. Macro-level research looks at large-scale social processes, such as social stability and change.

Identify the market/consumer: The initial step of client research is distinguishing your clients. Your statistical surveying taught to enable you to comprehend your potential clients. Assist client research can enable you to build up a more point by point picture of them and see how to target them. It will likewise highlight key attributes your clients offer, such as: gender, age, occupation, disposable income, residential location, recreational exercises.

Identify customer needs:Customer needs identify, is the way toward figuring out what and how a client needs an item to perform. Client needs are non-specialized, and they mirror the client’s view of the item, not the real plan particulars, albeit oftentimes they are firmly related.

- Listen to what the customer says, ask the customer questions designed to get new information’s.- Ask the price range he is considering- Give the customer a choice by presenting different products for comparison,- Ask for feedback- Repeat the information

Identify problems:An apparent gap between the current state and a coveted state, or a deviation from a standard, or existing conditions, is when we identify problems in a business. The moment a business owner, take a decision to change something or want to develop his business and skip some small details, it might turn into problems. That moment problems must be identified and find solutions. This is done by the help of marketing research which helps to identify the cause of a problem to a business.

Product or service improvements:

Product or service improvement is the process of consistent change, to add more value or to improve the product and service. Service improvement is a progressing push to enhance items, administrations, or procedures that are continually assessed and enhanced with the goal to keep and make customers regular for a business. Market research helps to figure out what a business needs to improve to be able to add value to its products of services.

Exploring new markets:While existing available markets at no time in the future offer degree for extension, it is an ideal opportunity for a business to search for new markets. These can be done with the help of market research for example just like finding out about offering products or services in a remote nation, demographically distinctive, focusing on men and ladies, or different qualities, for example luxury items to lower-wage gatherings.

Monitor existing markets:Monitor exiting market is the process of continually and actively monitoring the external environment in order to identify customer needs, anticipate competitive actions, and, identify technological changes which will provide new market opportunities or market disruptions.

2.2 Market research methodsThe way toward social affair, investigating and interpreting data about a market, an item or administration to be offered available to be purchased in that market, and about the past, present and potential clients for the item or administration. Here are some examples of market research methods that help a business to manage their finances and plans for future developing:

-Surveys - Focus groups- Personal interviews- Observation of customer behaviour- Field trials (placing a new product in stores to see how customers response)

Primary researchPrimary research is a new research, carried out to answer specific issues or questions. It can involve questionnaires, surveys or interviews with individuals or small groups.

Secondary ResearchSecondary research, involves gathering existing data that has already been produced by others. For example, researching the internet, libraries, newspapers and company reports.

Analysis of Qualitative & Quantitative dataQualitative analysis uses subjective judgment based on unquantifiable information, such as management expertise, industry cycles, strength of research and development, and labour relations.

Quantitative analysis refers to economic, business or financial analysis that aims to understand or predict behaviour, or events, through the use of mathematical measurements and calculations, statistical modelling and research. Quantitative analysts aim to represent a given reality in terms of a numerical value. Quantitative analysis is employed for a number of reasons, including measurement, performance evaluation or valuation of a financial instrument, and predicting real world events such as changes in a country's gross domestic product (GDP) growth rate.

Research toolsResearch tool is an activity, regarding to collect information for a study, or a business. For example, observation forms, interview schedules, questionnaires, and interview guides are all classified as research tools

InterviewsA formal dialog between a hirer and a candidate, or regularly face to face, in which data is traded, with the goal of setting up the candidate's reasonableness for a position.

QuestionnairesA questionnaire, is an exploration instrument comprising of a progression of inquiries and different prompts with the end goal of get-together data from respondents.

Focus groupsA number of people come together with a moderator to focus on a specific product or topic. Focus groups are often used in market research or political analysis in guided or open discussions about a new product or something else to determine the reactions that can be expected from a larger population.

2.3 Market analysis tools & techniquesMarketing analysis, means, to study data collection and analysis consumer behaviour, supply and demand for the product a business wants to sell and other technical aspects of marketing theory and implementation. Examples of market tools and techniques are prices, brand and distribution to help create better advertising, public relations and promotions that build a business.

Micro analysis techniquesFactors or elements in an organization's immediate area, of operations that affect its performance and decision-making freedom. Micro analysis techniques, includes considerations related to suppliers, customers and local stakeholders, local government agencies or regulatory bodies.

SWOT analysisSWOT analysis, is a procedure that distinguishes an association's qualities, shortcomings, openings and dangers. In particular, SWOT is a fundamental, expository structure that surveys what an element (more often than not a business, however it can be utilized for a place, industry or item) can and can't do, for components both inside (the qualities and shortcomings) and outer (the potential open doors and dangers). Utilizing ecological information to assess the position of an organization, a SWOT examination figures out, what helps the firm, to finishing its targets, and what deterrents must be overcome, or limited to accomplish wanted outcomes: where the association is today, and where it might be situated later on.

Macro analysis techniquesMacro analysis technique, includes, things that may impact small businesses, but which are outside of their control. Specific examples of macro environment influences include competitors, changes in interest rates, changes in cultural tastes, disastrous weather, or government regulations.

PESTLE AnalysisPestle examination (political, financial, social and technological) describe a system of full scale ecological variables, utilized as a part of the natural checking segment of key administration.

It is a piece of an outside investigation when directing a vital examination or doing statistical surveying, and gives a diagram of the distinctive full scale ecological components to be contemplated. It is a vital instrument for understanding business sector development or decrease, business position, potential and bearing for operations.

Competitor Analysis Porter's Five Forces model, named after Michael E. Porter, identifies and analyses five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. These forces are:

1. Competition in the industry (The larger the number of competitors, along with the number of equivalent products and services they offer, dictates the power of a company. Suppliers and buyers seek out a company's competition if they are unable to receive a suitable deal)2. Potential of new entrants into the industry (A company's power is affected by the force of new entrants into its market. A company's position may be significantly weakened, if new entrants have many opportunities and money to join the same market.)3. Power of suppliers (When there are less suppliers in an industry, suppliers have significant power to drive up the price, of goods and services. The fewer number of suppliers, and the more a company depends upon a supplier, the more power a supplier holds)4. Power of customers (This force describes impact of customers; how significant each customer is and how much it would cost a customer to switch from one company to another. The smaller and more powerful a client base, the more power it holds)5. Threat of substitute products (If customers rely on a company to provide a tool or service that can be switched with another tool or service or by performing the task manually, and this substitution is fairly easy and of low cost, a company's power can be weakened)

Task 3 – E-marketing E-marketing is a procedure of arranging and executing the origination, appropriation, advancement, and estimating of items and administrations in a computerized, organized condition, for example, the Web, to encourage trades and fulfil client requests. E-marketing furnishes clients with more accommodation and more aggressive costs, and it empowers organizations to diminish operational costs. E-marketing incorporates promoting on the Web, as well as incorporates advertising done through email and remote media.

4.2 E-Marketing methodsE-marketing covers different administrations like: -Search Engine Marketing (SEM)-Search Engine Optimization (SEO)-Display Advertising-Pay Per Click Advertising-Social Media Marketing-E-Mail Marketing-Referral Marketing-Affiliate Marketing

-Inbound Marketing-Video MarketingWhen running internet marketing campaigns online, advertisers can target the message to a desired market using search words and tags and on the other side see all the analytics like source of traffic, amount of traffic, interactive of customers, conversions etc. Also, the effects of online marketing usually last longer compared to traditional TV ads where they are aired in real time. Cost of e-marketing is significant smaller than traditional ads and thanks to these days technology, advertisers can spread their message in a very short time, all around the globe.

Search engine marketing:A type of web marketing which promotes web sites by increasing visibility in search engine results pages through search engine optimization as well as through paid advertising, strategic content marketing and social media networks

Pay per click:Advertising which is presented on speculation by a web publisher such as a search engine results page or a home page on a browser which only charges the advertiser for the number of times someone clicks on the ad to go to the targeted web site, not the number of viewers of the advertisement.

Search engine optimisation: A refinement of SEM, improving the rankings or visibility of a web page in search engines search results. SEO programs work to move targeted search results higher in rankings when results are presented to users of search engines such as Google, Bing, Yahoo!, and others.

On line advertising:Advertising in a static, set space which is composed of images or artwork and words. The same as you see ads in newspapers and magazines. Online advertising can be seen on blogs, websites and different content pointed to reach attention of people.

Viral marketing:Viral marketing is a marketing technique that allows web users to share information’s and content in social networks such as: Facebook, Instagram, and Snapchat. Viral marketing is by far the most efficient method to spread news, political campaigns and any other web pages and links.

Email marketing:Marketing based on the distribution of a message via e-mail. E-Mail marketing can consist of a text message, a combination of words and images such as in a display ad or provide access to a video on a web site or public video site.

4.2 Online image managementOnline identity management (OIM), also known as online image management, is a method for generating a distinguished Web presence of a person, business or organisation on the Internet.In order to manage their online image, companies must create their website/blog, social media pages, create video presentation, write press release, create an app or podcast, ask customers to leave online feedback, on reviews websites and spread the word about their business through social media.Here is an example with the best rated advert for Sainsbury’sSainsbury’s OFFICIAL Christmas Advert 2015 – Mog’s Christmas Calamity: https://www.youtube.com/watch?v=kuRn2S7iPNU

• In this video the Sainsbury’s company, is trying to present an animation video with a regular Christmas day, starting normal on the first appearance, but ending in a disaster thanks to an innocent little cat, that created trouble in the house. This video is created in such a way, that is sweet and attracting attention of people (animals especially cat's they attract attention of many people and melting their hearts). What Sainsbury did in this video, is that innocent kitty that provoked all the damage in the house (destroyed Christmas tree, burning kitchen oven and starting fire in the house) in the end the hero that safe Christmas of that family, is Sainsbury’s, proving all goods that a normal family need for Christmas. This is how a successful marketing campaign should be done. Touching a sensitive part of people's and featuring their best part of their business.

Here is one of the poorest advert for HTC

https://www.youtube.com/watch?v=kvjDtaCkacQ

• On the other side, the worst marketing campaign possible, is done by HTC company, that failed to deliver a professional and creative way to attract new customers. In preview video, is one of the worst rated marketing campaign that is promoting HTC mobile company, running a video showing amateur street rappers, showing basic signs with HTC, which is totally unrelated with a huge brand like HTC mobile phones. Message that this campaign tries to deliver is creating confusion, down-rate the brand and make business to lose customers.

With this example, we can see a clear difference between two companies, the first one that invested in a professional marketing campaign and the second that didn't pay too much attention to promote their business image.

Management of a business have to regularly check what people are saying and what reviews company have. A successful business pay attention to opinions of customers and try to keep the brand strong with refreshing campaign of adverts, workshops, surveys and other form of tracking information’s about that specific company. If is happening that a business to get any bad reviews or have customers that try to damage the image of that specific business, management have to carry a campaign to distract public from the bad reviews, to keep the business image strong.

On line reputation management:Reputation management refers to the influencing and controlling of an individual's or group's reputation. Online reputation management focuses on the management of a product and service search website results. Reputation management of any business can be found on review websites, social media and offline, based on customers experience with a subjected company.

Use of Social MediaSocial media is a modern way to keep your business popular, engage customers, build list with fans, and to promote almost any kind of business. Social media includes popular networking websites, like Facebook and Twitter, LinkedIn, Pinterest, Instagram, Snapchat and many others. It involves blogging and forums and any aspect of an interactive presence which allows individuals the ability to engage in conversations with one another, often as a discussion over a particular blog post, news article, or event.

Task 4 – Applying your learning

After I analysed Fratelli Cafe, I notice that, my organisation which is known as Fratelli Café is not using any form of advertising and promotion, physical and online.I decide to start a market research followed by a campaign to spread the word about my coffee shop. Fratelli Café is a small family run business based in Romania and the company is known for its good taste and variety of snacks in the local street of operation. The company needs to expand and for this a research will be done to find out the best method of promotion to reach its customers. The research has the following aims:

-Develop brand awareness through a steady, month to month increase of new customers.-Develop an increase in sales while achieving a status quo state or decrease in marketing expenses.-Develop awareness of the structured conversation system measured by customers coming to the Fratelli Café solely for meeting people.

3.1 Use of market analysis techniques

Market analysis technique of Coffee Bar Marketing Plan:

Fratelli Café is a unique local bar/coffee/tapas house in Bucharest that provides a friendly, effective place where singles can meet. Fratelli Café is not your typical bar where people go to meet other singles. Fratelli Café has a unique service called the structure conversation system that is quite effective for allowing singles to meet each other and provide them with valuable insight into the other person through reflective conversation.  The structured system provides an atmosphere that lowers inhibitions and breeds confidence allowing singles to meet other singles and gain insight into their personality by way of thoughtful discourse.Meeting people is one of the largest hurdles 25-45-year-old singles face.  Fratelli Café provides this group with an effective solution to this problem. 

Situation Analysis

Fratelli Café has just begun business, and marketing is essential to its success and future profitability.  The bar offers a place for people to meet in a comfortable, person-meeting environment.  The basic market need is place where singles can meet new similar people.  Fratelli Café uses a sophisticated conversation system to enhance and facilitate singles meeting each other.

Market SummaryFratelli Café possess good information about the market and knows a great deal about the common attributes of the prized and loyal customers.  Fratelli Café will leverage this information to better understand who is served, their specific needs, and how the Fratelli Café can better communicate with them.

Market Analysis

Market NeedsFratelli Café is a unique bar/coffee shop/tapas house that is organized to try to facilitate new friendships.  The Fratelli Café will offer a changing menu of tapas, microbrews, and assorted coffee drinks in conjunction with a structured conversation system.  Fratelli Café seeks to fulfil the following benefits that are important to their customers.

Selection: a creative choice of food and drink and a well-constructed structured conversation system.

Accessibility: the patron will gain access to the Fratelli Café with minimal waits and long business hours.

Customer service: the customer is always right.Competitive pricing: all products will be competitively priced relative to the competition.

Market TrendsThe market trend is headed toward a more sophisticated customer.  The restaurant/bar patron today is more sophisticated in a number of different ways:

Food quality: the preference for higher-quality ingredients is being reinforced as customers are being subjected to an increasing number of options.

Quality conversation: patrons are recognizing intellectual conversations can be had in bar settings and would prefer this over normal bar talk.

Access to meeting people: people are tired of being single and are looking for ways to meet like-minded individuals.

Market GrowthIn 2000, the global bar/restaurant market reached 25 billion Euros.  Alcohol sales are estimated to grow by 8 % for the next few years.  This growth can be attributed to several factors.  The first factor is Romanian’s reliance on alcohol for socialization.  This factor is intuitive as alcohol breaks down social inhibitions.

Another factor is the trend to eat and drink outside of the home.  This occurs as Romanian’s work longer and longer hours during the week.  Eating and drinking out is a convenience that many are willing to pay for.  It also provides contact with more people.

SWOT AnalysisThe following SWOT analysis captures key strengths and weaknesses within the company and describes the opportunities and threats facing the Fratelli Café.

Strengths-Strong relationships with third party vendors.

-Excellent staff who are highly trained and customer attentive.-The structured conversation system.

Weaknesses-The Fratelli Café's limited brand equity.-The struggle to continually have current and new conversation topics.

-A limited marketing budget to develop brand awareness.

Opportunities-A growing market with a significant percentage of the of the target market still unaware of the Fratelli Café's.

-Increasing sales opportunities as people become familiar with the advantages of the structured conversation system.The ability to lower variable costs through efficiency gains.

Threats-Competition from taverns.-Competition from other sources of singles meeting events.

-A slump in the economy which will decrease discretionary spending.

CompetitionThe competition comes from several different sources.

BarsThere are many different types of bars or taverns.  Some are better than others for meeting people, however, none of them have the business mission to bring together singles.Coffee ShopsCoffee shops are typically an easy-going social setting that does lend itself for people to meet others.  Conversations occur in part because of the historical underpinning of coffee houses, in part by virtue of the fact that the background music is not blaring. Coffee shops rarely have any type of organized activities to bring singles together.Every person has their own method of meeting people, some more useful than others.  Fratelli Café predicts singles will abandon, or at least supplement, their current method of meeting people with the Fratelli Café's activities as they are thoughtfully designed to achieve the goal of introducing like-minded individuals. 

Marketing MixFratelli Café's marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service.

Pricing: the pricing scheme is based on standard industry practices.

Distribution: all services and products will be distributed from Fratelli Café's retail space.

Advertising and promotion: the most successful advertising will be with Willamette Weekly.  Additionally,

strategic relationships will be developed with companies such as Oxygen Sport Club as well as use of a grassroots promotion system.Customer service: obsessive customer attention is the mantra.  The Fratelli Café' philosophy is to do whatever needs to be done to impress the customer.  While this could reduce short-term profits, it will strengthen long-term profitability.

Marketing ResearchDuring the initial phases of the marketing plan development, several focus groups were held to gain insight into a variety of likely customers.  These focus groups provided useful insight into the decision-making process of these consumers.

An additional source of dynamic market research is a feedback system based on a suggestion card system.  The suggestion card has several statements that patrons are asked to rate in terms of a given scale.  There are also several open-ended questions that allow the customer to freely offer constructive criticism or praise.  This will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their commitment to the customer that their suggestions are valued.

The last source of market research will be competitive analysis.  This will be done by regularly visiting competitors and analysing their service offerings.

StrategiesThe single objective is to position the Fratelli Café as the premier place for young professional singles to meet like-minded individuals.  The marketing strategy will seek to first create customer awareness regarding their services offered, develop that customer base, and work toward building customer loyalty and referrals.

The message Fratelli Café will seek to communicate is that Fratelli Café is the place to meet singles.  This message will be communicated through a variety of methods.  The first method will be advertisements.  The bulk of the advertisements will be in the Weekly Local newspaper, a weekly entertainment guide in Bucharest that has impressive readership numbers for the desired target population.

Another method will be through establishing strategic relationships with companies that have similar demographics such as the Oxygen Sport Club.  Establishing a mutually beneficial relationship will allow both organizations to develop visibility for each other.

The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Fratelli Café for the first time.  The coupon will be an economic incentive for the newcomer to try Fratelli Café.  The coupon also has the added force of a referral from a friend.

ImplementationThe following milestones identify key marketing programs.  It is important to accomplish each one on time and on budget. 

3.2 Interpretation of market research findings and market analysisFratelli Café sells the following:

Espresso, Cappuccino, Coffee, and other Coffee/Espresso drinks.Coffee and coffee-related drinks are hugely popular, particularly in the South of Romania, expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation.

An Assortment of TapasTapas are chosen because they can be relatively easy to make, the offerings can be changed frequently, and tapas are more community orientated, meaning they are designed for a table/multiple people to share.  This reinforces Fratelli Café mission of bringing new people together. During discussion with customers the research indicated that majority of single 25-45-year olds said that they have difficulty meeting new people. Many people feel uncomfortable in situations where they are not sure how to act.

Fratelli Café creates a setting in a bar/coffee shop that encourages thoughtful conversation, allowing patrons to gain insight into the other singles.  The key to the conversation system is structure.  The rules are clearly established.  Singles sit down at specific tables and discuss the assigned topic of conversation.  Everyone at these tables are single and looking to meet new people.  The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit and sometimes explicit insight to their background and past. 

The structured conversation system is successful because it reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to new people.  Additionally, for intellectually minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation or more generally in conversation itself.

Keys to SuccessAttracting customers who find value in the Fratelli Café' offering and who will frequent the shop regularly in order to meet like-minded single people.

Excellent customer service.Maintaining a cost of goods on foods at below 50%.

Target MarketsFratelli Café's customers can be broken down into two groups, singles, and non-singles.  The non-singles groups are smaller than the singles groups by virtue of the fact that if you are meeting someone whom you already know, the two of you can come up with the topic of conversation yourself, therefore, Fratelli Café's offers this group less value.  The demographics for the non-singles is similar to the singles, to be listed below.  The larger group then is the singles.  The demographics of the singles are:

-Single: self-evident.

-Professional: this characteristic is intuitive since the underlying element of Fratelli Café is thoughtful conversation,

and most professionals appreciate thought-provoking conversation.-Income over 40,000 Euro: this to a large degree is correlated to the fact that they are professional.-Age 25-45: the largest group of singles looking for companions.

PositioningThe Fratelli Café will position itself as a reasonably priced tapas/bar/coffee house that has an innovative, effective system for allowing single to meet each other.

The Fratelli Café's positioning will leverage their competitive edge:

-A unique approach to getting singles together called the structured conversation system.  This system was detailed in the Product and Services section, please refer to that section for more information. 

-This system is a competitive edge because most bars/taverns do not have a niche that they are concentrating on.  While every bar or coffee shop has a certain "flavour" and that is why someone will choose one bar or another, the flavour is only

surface deep.  The business model of the establishment is to sell alcohol and provide a social setting.  Beyond these two values, there is little other genuine value that the establishments try to provide. 

-Fratelli Café is distinguished by the fact that their business model concentrates on developing value for customers beyond serving drinks.  Fratelli Café develops an effective, albeit inherently structured, social setting that encourages meeting like-

minded individuals.  Providing the drinks is the source of income, an ancillary part of the business model.  Generating value for the customers is the main focus, if the customers are happy then the revenue will follow (assuming of course that proper

marketing and financial controls are employed).  Concentrating on the client's needs beyond serving alcohol is the distinguishing characteristic that will allow Fratelli Café to rapidly gain market share.

3.3 Presentation of market research findingsThis recommendation is for Fratelli Café but can be applied to any coffee shop in order to become a strong brand on the market.After I did a market research I found that people love to socialise, virtually and in real life, that’s why a coffee shops is a fantastic opportunity for anyone who want to socialise in real world, meet for a business conversation, or just to have a meal.

• I come to conclusion that the best way to make a coffee shop, or a brand successful is to open as many shops as possible, in good locations.

• I recommend this advice to my team to open new shops, in different cities and follow a marketing strategy that will succeed in front of any competition.

• create social media pages, update them with new content constantly, • create Facebook, Twitter and Google advert campaigns.

• create flyers and I spread them on high street and through door to door • create a lighted animated billboard in front of the coffee shop for featuring offers and videos promoting the coffee shop• pay influencer blogger to write about coffee shop on their blog, • run video ads on YouTube • create points cards, to make regular customers • every month staff must receive training to offer excellent customer services• run streets ad campaigns • create special offer on weekends for families • extend working hours• participating on events to build relationships and share business cards

Marketing Strategy:

Fratelli Café's strategy will be based on communicating Fratelli Café’s value to the targeted segments.  This will be done through a variety of methods.  The first method will be strategically placed advertisements.  One place that will be used for advertisements is the Weekly Newspaper, the liberal arts magazine that details all of the entertainment in Bucharest.

Another source of marketing will be done with strategic relationships with companies that have similar customer demographics.  One prime example is the Oxygen Sport Club.  While the club's patrons are not necessarily overwhelmingly single, the rest of the demographics match up.  The Viva Sport Club is a fairly exclusive downtown athletic club that by virtue of the membership costs, attracts professionals.  The strategic relationship with be mutually beneficial where both organizations will develop visibility for each other. 

The other form of advertising will be using "grassroots" methods where customers will be given coupons for their friends to try Fratelli Café for the first time.  The coupon will be an economic incentive for the newcomer to try Fratelli Café.  The coupon also has the added force of a referral from a friend.

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Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.

Tasknumber

LOs and AC Suggested evidence PASS

Suggested additional evidence MERIT

Suggested additional evidence DISTINCTION

1. LO1AC 1.1, 1.2,1.3

The learner must provide a comprehensive description of the diverse activities carried out in marketing departments in a range of businesses. Examples of the full range of activities should be included. Market segmentation needs to be explained in detail using a minimum of three segmentation methods. The explanation of the marketing mix covers all elements and it is applied correctly to named products

The learner provides a detailed explanation of why different tools are used to market products and services and the information is clear to the reader. Appropriate examples must be provided to illustrate the answer and demonstrate understanding.

The analysis should break the information on the relationship between the marketing mix and decision making into different parts. The learner must show how the concepts relate to practice and show why they are important; reference to some aspects of theory or research may support the analysis.

2. LO2AC 2.1, 2.2, 2.3

The explanation of the aims of research and market analysis should be comprehensive, covering benefits to both the organisation and the customer. Market research methods are accurately described and relevant examples provided. Market analysis tools and techniques are correctly outlined

The evaluation of the market research methods must be applied to the products and services identified by the learner. The evaluation should examine the strengths and weaknesses of the different methods and the learner must

make valid conclusions or reasoned judgements.

3 LO4AC 4.1, 4.2

The description of the methods used to e-market products and services should be extensive with a comprehensive range of methods provided. The explanation of how companies manage their online image must be detailed, with examples provided

The learners’ assessment of the benefits of e-marketing compared to traditional marketing techniques must show detailed knowledge and understanding. The assessment should go beyond costs and coverage and lead to judgements.

The evaluation must consider the strengths and weaknesses of the different measures used by companies to manage their online image. The learner must use examples to illustrate the points which are made and make some conclusions about the different approaches.

4 LO3AC 3.1,3.2, 3.3

The learner uses a minimum of two market analysis techniques to research the target market for a specified product or service. An accurate interpretation of the findings of the market research and market analysis and this must be presented (in writing or orally). The presentation needs to be clear covering the outcomes of the research and analysis

The learner uses market analysis techniques to make informed and relevant product or service decisions. Technology is used to present findings of market research and analysis and this is appropriate for the intended audience.

The analysis of the findings of the market research must consider the information in detail breaking the content into separate parts and examining each part in turn. There must be a direct and relevant link between the analysis and the marketing objectives. Insightful recommendations should be made based on the analysis and the marketing objectives. The recommendations need to be presented in a manner style appropriate for the audience.