Identify And Evaluate Marketing Opportunities

Identify And Evaluate Marketing Opportunities Assignment instructions

Activity 1

A small stationery shop recorded its diary sales for the years 2007 to 2011 in two tables:

Diary sales

Year	Units sold	Sales value	Average unit value	Average unit profit
2007	135	$1,300.75	$9.64	$5.78
2008	98	$988.82	$10.00	$5.05
2009	80	$897.58	$11.22	$4.82
2010	48	$803.30	$16.74	$7.03
2011	37	$421.80	$11.40	$4.21

Percentage diary sales by customer age group

Age group	2007	2008	2009	2010	2011
<30	32%	29%	16%	11%	6%
31-50	40%	40%	51%	52%	61%
>51	28%	31%	33%	37%	33%

Question:

What further information would you need to analyze information on market and business needs to identify marketing opportunities?

Preview answer:

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

Activity 3

Question:

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.

Source	Business Idea
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.

Activity 5

Question 5.2:

Analyse the external factors which could determine the financial viability of each of the offers.

Preview answer:

External factor	Opportunity 1:	Opportunity 2:	Opportunity 3
Politics	Applies	Applies	Applies
New entrants/competition	Applies	Applies	Applies
Economic dynamics	Applies	Applies	Applies
Sociocultural climate	Applies	Applies	Applies
Technology and innovations	Applies	Applies	Applies
Market trends	Applies	Applies	Applies

Trainer Comments:

“”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.””

Question 5.3:

Write a report which summarises your analyses and assesses the financial viability of each opportunity.

Preview answer:

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.

Trainer Comments:
“”Please review this question once you have re-answered question 5.2””

Activity 10

Question 10.2:

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.

Preview answer:

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