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Download we will look at the macro and microenvironments, marketing mix
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Global Sound (G.S.) We will look at the macro and microenvironments, marketing mix, segmentation and target market. We will also discuss differentiation and positioning as well as do a SWOT analysis so as to identify possible problems. We will then suggest recommendations and propose the best one. MACROENVIRONMENT This refers to the larger societal forces that affect the company, namely, demographic, economic, natural, technological, political and cultural. (Kotler and Armstrong, 1999) Demographic Marketers are interested in this because it involves people and people make up markets. It involves the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. The size and gender of the population is important to establish potential purchase levels. Economic Here we consider factors affecting consumer buying power and spending patterns (Kotler and Armstrong, 1999). Important here is what the income distribution of the country is. Natural These refer to the inputs by marketers or factors affecting marketing activities (Kotler and Armstrong, 1999). Technological Included here are forces, which create new technology, as well as new product and market opportunities (Kotler and Armstrong, 1999). 1 Political Kotler and Armstrong (1999) define this as the laws, government agencies and pressure groups that influence/ limit various organisations and individuals in a given society. Cultural This is defined as institutions and other forces that affect basic values, perceptions, preferences and behaviours of society (Kotler and Armstrong 1999). What type of society does South Africa have? MICROENVIRONMENT These forces affect the company’s ability to server its customers. The company itself, suppliers, marketing intermediaries, customers, competitors and publics are relevant here (Kotler and Armstrong 1999) . Company Other company groups are accounted for when making marketing plans – top management, finance, R&D, purchasing, manufacturing and purchasing are those making up the internal environment. The top managers are interested in the mission, broad strategies and policies (Kotler and Armstrong 1999). Suppliers This simply refers to the value delivery chain (Kotler and Armstrong 1999). While natural resources may affect receipt of goods, suppliers could possibly have other problems like strikes or low productivity. Marketing Intermediaries Firms helping to promote, sell and distribute its goods to final consumers (Kotler and Armstrong 1999). 2 Customers There are various types. Competitors The aim is for greater customer value and satisfaction than competitors can provide. Current competitors in this niche market are Publics This refers to any group who can impact Global Sound’s ability to achieve objectives. Financial is useful in terms of credit facilities and any other banking needs. Government can affect them if there were strict laws with regard to importing or import tax increases. Internal groups include employees. They important in that if they project a negative image about GS it may affect it negatively in terms of sales. Loyal hardworking employees are just as important as loyal customers. In this case they are clearly ininterested. MARKETING MIX This consists of the 4p’s – product, price place and promotion. These are the tools to provide a (positive) response in the target market (Kotler and Armstrong 1999). Product This is the good/service combination offered to target market. Included here is magazine quality – the glossy pages, design – modern and features – men’s issues. The brand name MEN’S HEALTH is also important. It is a reflection of the image of the magazine. When done correctly can result in people associating the name MH with this type of magazine. This implies a strong degree of brand presence. Price 3 What does it cost? Is it affordable? Internationally, its is approximately $21 dollars per issue. The price is lower for South Africa. However there are specials for subscribers. This acts as an incentive for consumers to subscribe to MH. Place This magazine is primarily distributed by resellers; as discussed above. An important question is where do LSM 6-8 shop. Clearly the availability of MH in Cape Town, for example, are in places like Claremont, Waterfront, Camps Bay amongst others. Promotion Here we referring to the communication of the product information and persuading target markets to buy it (Kotler and Armstrong 1999). They advertise in the following ways: direct mail, radio, television 10 seconds every 3 months), events promotion and sponsorships. They also use high impact sale points and news stand adverts. There internet website is also a form of promotion. SEGMENTATION MH is clearly using the niche marketing method in that they are looking a t a segment of a segment. Bases Geographic The known of areas of market development are the US, UK and South africa. It is clearly an effort to penetrate western markets. Demographic Age and lifecycle is 24-40 year old who are successful and ambitious. Even though women read it, men is the gender which MH is interested in attracting 4 primarily. There income levels fall within LSM 6-8, an average provided is R5000 or more per month. At present the appeal is to whites mainly. The middle class seems to be excluded or uninterested. Strategies to include this section could pove to be highly profitable. Psychographic Social class MH is aiming at is the “upper class” or those who can spend on leisure. The lifestyle of this consumer involves a great emphasis on health and fitness and they need stress relief due to high stress lives. They would probably be individuals motivated to succeed and outgoing and dynamic. Behavioural The benefit of this magazine is for men to learn about themselves and also serves their spouses who would also want to know about them. Their subscription offers imply an effort to create a loyal customer base. TARGET MARKET This is a summary almost of the above section. A description of the ideal consumer of MH s as follows. Males between 24 and 40 who fall in LSM 6-8 and at present is probably white. The person is self-motivated, goal oriented as well as sophisticated and mature but also adventurous and active. The fact that mainly men buy this magazine implies that the black middle and upper class is an unexploited area. Considering that whites are in minority, an effort to appeal to the black market may serve the magazine well. POSITIONING 5 This is important as this magazine as per comparative amp figures is probably in gthe growth stages. This means that while people are aware of the product, encouragement to read this magazine is necessary. Positioning by definition refers to the place the product occupies in a person’s mind (Kotler and Armstrong 1999). The requirement is to create and image of status as well as the five pillars. This is a relatively new market and MH was one of the first entrants in South Africa. They main point is that MH is trying to let consumers know this is a magazine about men and projects a clean image as opposed to the “girlie” magazines it seems to be replacing. SWOT ANALYSIS Strengths This is a relatively new market so there is room for expansion. They are the first to enter in South Africa. The trend is toward aspects like health and fitness as well as interest in the other three pillars. In general people like to learn about themselves and thus MH fills this need. There marketing strategy seems to be a good one especially the support from H&R. Weaknesses They are losing out on the black market and this makes up a large part of the South African consumer base. This is clearly a weak point in their marketing strategy. Opportunities As per the said weakness they to enter the black market. They were here first and thus may have some R&D advantages over competitors. Threats Competitors are the main threat as they may be bigger companies worlwide with more capital to invest as well as a greater marketing strategy. There is also the possibility 6 that this type of magazine can have a sales decline in that people may change interests. Economic threats and these magazines being quite pricey could mean individuals buying that magazine most important to them. This could mean buying Car. Thus the implication that other magazines in other niche markets are also competitors especially when spending is cut for economic reasons. PROBLEMS The problems I wish to identify are that black markets have not been adequately marketed to and that competition could have a negative effect on MH as the market is still small. RECOMMENDATIONS In terms of black markets, the obvious solution is to create strategies aimed at this market. However the problem arising from this is losing old customers. They should therefore be sure to subtly encourage a greater number in terms of race to buy this magazine. They may use the direct mail technique in for this. Competition is always present. The best option here is to create loyalty through subscription. Another way is through the advertisements MH carries. The more adverts and specifically those which interest consumers could be advantageous. There is not one best technique to use to be a success. These solutions should be used together so as to create a successful magazine. 7 References Case Study: Men’s Health, Marketing 1. 2000. Kotler, P & Armstrong, G. Principles of Marketing (1999) 8th Ed Prentice Hall International:New Jersey. 8