IB Business Management SL 4.2 Marketing Planning

Covered syllabus points

4.2.1—Role of marketing planning 4.2.2—STP and position maps 4.2.3—Niche and mass markets 4.2.4—Unique selling point 4.2.5—Differentiation

[Maximum number: 4]

Other operating cost savings were made. However, Adriana decided to maintain PU’s aggressive marketing strategies in contrast to most other universities, which were cutting marketing budgets because of the economic recession. Adriana saw marketing expenditure as a worthwhile investment. The promotion emphasized PU’s achievements both in research and teaching, its services for students, its high levels of student satisfaction and its competitive fees.

Ethical issues PU’s mission statement is based on inclusivity, social responsibility, excellence, perseverance, commitment, resilience, ambition and creativity. The articles governing the university include transparency, freedom of speech and tolerance. Failure to achieve some of these articles has recently been alleged in social media and is now appearing in national newspapers: y A recent appointment as a trustee of the university, Di Jones, is causing controversy. Di is a director of a multinational computer company that is funding some of PU’s IT research. Political activists have discovered that Di is descended from a family that used slaves on their sugar plantation in the 19th century. The activists want her removed from her role. y The student Politics Society has invited a guest speaker who, in the past, has been accused of expressing antisemitic views in one of his books. The society is arguing that freedom of speech should be upheld, while other groups, including students and lecturers, say that the university should not be a platform for intolerant views. y One of the companies funding medical research at the university has been accused of exploiting least developed countries (LDCs) by over-pricing medicine in those countries and selling medicines that have not been approved in the European Union or the United States.

Describe two long-term benefits for P U of its marketing strategies.

Background given in the case study: P U's marketing strategies are "aggressive" (line 60) and P U, unlike its competitors, keeps investing a lot in its marketing ("Adriana saw marketing expenditure as a worthwhile investment", (lines 62-63)), especially in terms of promotion (communicating actively on PU's "achievements both in research and teaching" (line 63) and on its "competitive fees" (line 64)).

Long-term benefits include:
The main anticipated long-term benefit (ie the strategic aim that justifies these marketing strategies) is to get more students (as they are the 'customers' of P U ), both local students (as "many local students have decided to postpone their studies for a year", (lines 52-53)) and international students (as they "pay higher fees to the university than the fees that the university receives from local student" (lines 54-55)). For P U, more students mean more revenue (more income), which improves the cash-flow situation (very important, as PU has "cash-flow problems", as repeated several times, lines 57, 69 and 85).

Other long-term benefits of P U 's marketing strategies include:
- other external stakeholders will be aware of P U's success - stakeholders from the private sector (eg Di Jones who is "director of a multinational computer company that is funding some of $P \cup$ 's IT research", (line 108)), or in the public sector (local and regional politicians, so that they remember P U and keep supporting it);
- attracting new staff to P U, as its intensive promotion indirectly showcases it as a potential employer of choice.
N.B. The question is not about the marketing mix ( 4 Ps , or even 7Ps). If the answer is just an outline of P U 's marketing mix (describing P U 's Product (high quality courses), Price (competitive fees) etc);
award up to [2], as it shows some understanding of marketing, but not of the topic of strategy, nor of the notion of long

term benefits. Likewise, answers about ATL and BTL forms of promotion and answers that use the Ansoff matrix (eg product development: PU offering new courses) may also be partially credited, as they display knowledge of marketing.

Accept any other relevant long-term benefit.
If a candidate provides context that provides a benefit, but the benefit is not explicitly stated, the "second" mark can be awarded i.e. [0] + [1].

Mark as a [2] + [2].
Award [1] for each appropriate benefit identified and [1] for some description and application. Award a maximum of [2] for each benefit. Maximum [4] for two benefits.

[Maximum number: 2]

Les Amis PLC (LA)
Les Amis PLC (LA) is a public limited company that sells casual clothes for men. Its target market is high-income professionals who value a personalized sales service. LA has developed brand awareness and operates 42 shops around the country. It owns 10 of these shops and leases the remaining 32 . LA employs 950 people, who receive a higher wage than the industry average. LA also pays commission to sales staff working in the shops. LA's organizational culture values the wellbeing and needs of its employees. Labour turnover is very low.
Recently, LA launched an online shop. Since then, online sales have increased considerably, while sales in LA's physical shops have fallen. Shareholders want LA to close all its physical shops and sell online only. However, many of the employees will be made redundant if the physical shops are closed.
LA's current chief executive officer (CEO), Marie Brossard, has a democratic leadership style, and she regularly meets with employees and encourages feedback. LA's managers and employee representatives have never had a conflict. Marie plans to discuss the shareholders' desire to close LA's physical shops with all the shop managers.
Customer returns of clothing orders at LA have increased substantially. Most returns are from online customers unfamiliar with LA's clothing sizes. Marie has consulted the e-commerce department on how to reduce the increasing cost of returns, and they have suggested investing in expensive software that will enable online customers to find their correct clothing size.

Define the term target market.

[Maximum number: 2]

Musical Musings (MM) manufactures musical keyboards, using batch production to produce a limited range. MM’s products are designed for use in schools and homes. MM sells directly to schools, and, for the home market, sells through shops specializing in technology. MM’s costs are kept low by:
• limiting its product range
• focusing on a small target market, which enables MM to limit the features on its keyboards and keep the appearance functional. MM provides free online “Teach yourself to play the keyboard” training courses for all customers.

In 2021, MM’s sales declined. MM is now considering targeting the niche market of professional musicians. MM would change its product design by adding a range of different sound features and improving the appearance of its keyboards. To achieve this change, MM would eventually stop supplying its existing market. Professional musicians would pay a higher negotiated price for improved keyboards made to their individual specifications. Changing its production process to job/customized production would be expensive for MM, however, and it would have to invest in a new marketing strategy.

Musical Musings (MM)

Musical Musings (MM) manufactures musical keyboards, using batch production to produce a limited range.
MM's products are designed for use in schools and homes. MM sells directly to schools, and, for the home market, sells through shops specializing in technology. MM's costs are kept low by:
- limiting its product range

Figure for Question 3 — IB Business Management SL

- focusing on a small target market, which enables MM to limit the features on its keyboards and keep the appearance functional.
MM provides free online "Teach yourself to play the keyboard" training courses for all customers.
In 2021, MM employed an average of 50 people. During that year, however, 12 people left the company. Their reasons for leaving are shown in Table 5.

$Table 5: Stated reasons for employees leaving \(\boldsymbol{M$

Table 5: Stated reasons for employees leaving \(\boldsymbol{M

MM's labour turnover rate for 2021 was 24 %. The manufacturing industry average was 15 %.
In 2021, MM's sales declined. MM is now considering targeting the niche market of professional musicians. MM would change its product design by adding a range of different sound features and improving the appearance of its keyboards. To achieve this change, MM would eventually stop supplying its existing market. Professional musicians would pay a higher negotiated price for improved keyboards made to their individual specifications. Changing its production process to job/customized production would be expensive for MM, however, and it would have to invest in a new marketing strategy.

State two characteristics of a niche market.

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IB Business Management SL 4.2 Marketing Planning Topic Practice

Covered syllabus points

Question 1

Question 2

Question 3