Download we will look at the macro and microenvironments, marketing mix

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).
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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).
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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
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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
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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
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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
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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.
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References
Case Study: Men’s Health, Marketing 1. 2000.
Kotler, P & Armstrong, G. Principles of Marketing (1999) 8th Ed Prentice Hall
International:New Jersey.
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