BSBMKG501B – Identify and evaluate marketing opportunities
- A small stationery shop recorded its diary sales for the years 2007 to 2011 in two tables:
|Year||Units sold||Sales value||Average unit value||Average unit profit|
Percentage diary sales by customer age group
What further information would you need to analyse information on market and business needs to identify marketing opportunities?
Other information that may be needed include the income levels of the target market, the spending and behavioural/habitual tendencies of the customers, demographics, psychographics and interests
“” Good answer, however, you should consider outside factors, for example, market trends, comparative market information. ””
Identify one idea suggested by each of these sources, showing how the idea was developed and analysing its potential for developing into a marketing opportunity, and showing how it would fit with the entrepreneur’s current business.
## Additional Information:
Source of business ideas
Surveys/research and development; exhibitions, trade shows and expos; personal skills, experiences and interests; mass media.
|Exhibitions, trade shows and expos
|Supply of books – identify the gap, design a business plan and invest in the business. It would grow further, earning the entrepreneur money.|
|Personal skills, experiences and interests
|Music production based on the experience from listening music. Production of quality music audios and videos, and expansion of existing business.|
|Mass media||Agribusiness – from analysing the news. Investing in agribusiness and expanding the business to increase the profit.|
|Surveys/Research and development||Sale of budget phones – realize that consumers need budget phones, and start supplying them in the market; expand into bigger markets and bolster revenue.|
Analyse the external factors which could determine the financial viability of each of the offers.
|External factor||Opportunity 1:||Opportunity 2:||Opportunity 3|
|Technology and innovations||Applies||Applies||Applies|
“”Good start, however you should analyse how the external factors would influence the financial viability of the opportunity. You should look at codes of practice, policies and guidelines, legislation, costs, benefits and risk for each of the offers. You also need to actually analyse the opportunities. Stating that they apply is not a detailed enough answer.””
Write a report which summarises your analyses and assesses the financial viability of each opportunity.
The three opportunities are affected by political, economic, sociocultural, technological factors, competition, and market trends.
They are viable, since they can potentially increase the competitive advantage of the business, thereby increasing sales.
“”Please review this question once you have re-answered question 5.2””
Your manufacturing organisation is deciding whether to expand by introducing a new product to your existing markets, or to enter the market in a new city with your existing products. Compare the estimated resource requirements for each potential market.
|Resource||New Product||New market|
|Facility and asset||AUD 30,000||AUD 10,000|
|Material and supplies||AUD 2,000||AUD 2,000|
|Personnel||AUD 1,500||AUD 1,000|
|Technological resources||AUD 1,500||AUD 500|
|Advertising, transportation and selling finances||AUD 2,000||AUD 1,000|
From the table it is evident that introduction of a new product requires more resources compared to introduction of a new market
“”Good, however, it is not only focus on cost/ investment amount, you should add other factors to support your ideas. E.g. Staff numbers – you might also include information such as extra assembly line people in the factory for a new product. Please add more information than just a dollar value.””