Market new business ventures
About the Unit
Marketing is not just about advertising and promotion. It is about gaining the maximum market share at a minimum cost, by truly understanding who your customer is.
This unit will teach you how to develop, implement and evaluate an effective marketing strategy. You will learn about the 4P’s of product, price, place and promotion and how these four pillars work together to ensure a successful business.
Start with the Study guide BSBESB404.
What is Marketing?
Learning Outcomes
BSBESB404- Market New Business Ventures
- Develop Marketing strategies for your business
- Establish the marketing mix for your business
- Implement the marketing strategies
- Evaluate the marketing performance
Click on tabs for Learning Content
What is Marketing?
John Jantz says “Marketing is getting someone who has a need to know, like and trust you”.
Investopedia says:”Marketing refers to activities a company undertakes to promote the buying or selling of a product or service. Marketing includes advertising, selling, and delivering products to consumers or other businesses.”
We often think Marketing is just advertising, however, it is really about finding out what problems you can solve for your customers. To do that, you need to determine who your ideal customer is. You cannot have “everyone” as your customer. That is impossible, because humans are all different in where they live, what they do, what they enjoy, why they buy, how much money they have etc.
Marketing is about finding that emotional connection to your customers so they become loyal, return and recommend your business.
The evolving world of technology has meant there are even more channels available to communicate with your customers. Understanding who they are and where they visit will help you develop a marketing strategy that effectively targets your ideal customer.
Develop a sales funnel -Know, Like, trust, try and buy.
Once they buy, you also need to focus on post sale activities. Keep them coming back for more. Your aim in marketing is to keep your brand front of mind. You want them to think of your brand before your competitors.
There are specialists who can help you to manage your marketing. Explore your options. Remember, marketing is all about producing sales. Your time may be better spent focusing on your strengths whilst a digital management specialist looks after the social media posts
Refer to the following sections of your Small Business plan to assist you with this unit:
- Marketing Plan
- Operational Plan
- Financial Plan
It is recommended that you work through the tabs in order, use all learning content and your Small Business Plan to respond to the questions and tasks.
If you have any questions you can contact your Trainer on assessments@mypathway.com.au
➡Review Knowledge Question 1 &2
Market Analysis of trends and customer demand
“A trend is a general direction in which something is developing or changing”. (Oxford dictionary)
There can be trends in fashion that are usually cyclical. “What goes around, comes around”. There could be a trend in financial markets where there is evidence of a perceived tendancy for the markets to be consistently dropping. Social media often sees trends on posts over a short period of time.
These trends can indicate a change in market demand, which could affect your business either positively or negatively.
The ability to spot the trends before they happen can be advantageous to your business. However, if you miss it, you could be too late.
For example, if you owned a Blockbuster video store and didn’t identify the trend in online streaming services, your business would be finished.
There are many factors that affect business demand. You can’t be competitive if you don’t know what the competition is doing. Trend analysis or identifying patterns in a particular market, helps you make informed decisions about your marketing strategies.
The links below offer some examples and insights.
➡Review Knowledge Question 3,8.
Gaining Customer Feedback
Feedback, good or bad, is a gift. It gives you the opportunity to evaluate what you are doing well and where you can improve. There are many ways you can collect this feedback.
These are discussed in the links below.
Develop a Marketing Strategy
A marketing strategy is a business’s approach to how they will reach their desired customers. The ultimate goal with a marketing strategy is to gain maximum mind share from minimum cost.
Include the following in your marketing strategy:
- Set clear, realistic, measurable business objectives.
- Calculate your Customer Acquisition Cost and your budget for marketing spending.
- Market Positioning-determine what your Unique selling position is. What is your point of difference?
- Market segment- define your target market or ideal customer.
- Marketing programs-Identify the medium of your marketing that best suits your objectives and target market.
Video Introduction
Digital Marketing Strategy
You may decide to design a Digital Strategy to outline a plan for your digital and online suite of marketing tools. This link explains how you can do this:
Design a one page marketing strategy for your business using the template below:
Know your Target Market
Knowing and understanding your customer will allow you to target your messaging and gauge your pricing structure more effectively.
When defining your target market, you need to write a couple of paragraphs that outline who your target clients are and what problems you can solve for them.
Here are a few questions to start with:
- What gender are they?
- What age group?
- Is where they live important?
- What languages do they speak?
- How educated are they?
- How do they prefer to buy?
- How much money do they earn?
- What hobbies do they have?
- What problems do they have?
- What websites do they visit?
- What is their lifestyle?
A Buyer persona or Avatar
A Buyer persona or Avatar is a more focused view on your target market. You can see in the slide below that the detail in knowing your client will help you make decisions about branding, pricing, where you advertise, how you advertise, what messaging you will need, the best location to have your business. This is also known as the Marketing Mix. (Refer to next tab for more information)
The slide below is an example of an avatar for a weight loss business.
This video explains how to develop one and the advantages of really knowing your customer.
➡Review Knowledge Question 4b
What’s your brand?
List 2 brands that come to mind. How do they make you feel?
Your brand is the identity of your business. It is more than colours, fonts and logos. It is the personality of your business.
Building your own brand comes down to:
- Researching your target market & your competitors
- Picking your focus and personality
- Choosing your business name
- Writing your slogan, unique selling point or key message
- Choosing “the look”
- Designing your logo
- Applying your brand across your business
Connect to your customers through feelings and benefits.
Branding is about “owning your customer’s mind” or being one of the first brands they think of when they think of your product or service.
This video explains how to do it.
➡Review Knowledge Question 9
The Customer Journey
Hubspot published in May 2023, that “70% of online shoppers abandoned their carts in 2021.” Why would people spend hours shopping on a website and then not complete the purchase? There are many reasons why and finding out about the customer journey, pain points and hot spots can help you identify how to turn a visitor into a customer.
Read this blog below on “How to Create an Effective Customer Journey Map”. You need to establish how you are going to engage, respond and monitor your customers journey every step of the way.
➡ Review Knowledge Question 10
Stakeholders:
In business we are a team and we all work together for the same goal. Stakeholders are those people that have a say or an influence in your business.
- Customers offer feedback and insight into how your business can improve, so they are stakeholders.
- Staff who speak daily to customers are stakeholders
- The government and industry organisations have rules and regulations about ethical and marketing practices, so they are stakeholders.
- Your marketing contractor and suppliers can also offer input into potential opportunities for your business.
Any individual or organisation that has a say or influence in your business is a stakeholder.
The Customer journey map shows the customer’s experience as they go through the stages of purchasing a product or service. It can offer the business information on how to improve the customer’s experience, increase conversions and boost customer retention.
➡Review Knowledge Question 5
Features & Benefits
We do not sell features, we sell benefits. Think about your product or service and differentiate what are its features and what benefits it gives your consumer.
For example- you sell jackets.
Features- available in a variety of sizes/ made of wool/available in red and blue.
Benefits- you look good, it keeps you warm.
➡Review Knowledge Question 4a, 9
Marketing & Promotional Activities
➡Review Knowledge Question 4&5
Establish the Marketing Mix
Once you have determined your target market, you then consider the 4P’s.
- Define what product or service your target market needs?
- Determine what motivates them to buy your product?
- How much are they prepared to spend?
- Where do they buy? Online or face to face?
- Where will you communicate your product to them? Where will your target market be looking for your promotions?
Get these 4P’s right and your business will thrive. The Marketing mix is a tool that you use to get your marketing right. It is also referred to as the “4P’s”
- Product
- Price
- Place
- Promotion
Many people think of Marketing only as Promotion, however all 4 sections work together equally to sell your product. Your customer is at the centre of it all and what they think matters.
The 4P’s of the Marketing Mix
➡Review Knowledge Question 5
Product
What is your USP?
What is your Unique Selling Point (USP) or your Niche? In Business, we solve customers problems. What benefits does your product or service offer? What makes your product/service different to everyone else? Why should they choose you over the competitor’s? Your market research, SWOT analysis and Competitor Analysis will help you find this.
What’s your Brand?
Price
Pricing Strategy
getting your pricing right is crucial to the viability of your business. This Pricing video explains the strategy behind pricing and will help you determine the best way to price your goods and services.
Credit policies
for customers can differentiate you from your competitors. Offering discounts for paying early or on time could be a win/ win for you and your customer. The link below explores the different options you could consider.
Place
Promotion
Promotions –
Promotion is about communicating your product to your target market. The tools of promotion include Advertising, selling, direct marketing, sales promotions and public relations. What mix you choose depends on your target market and your budget and goals.
Set Marketing Objectives
There are many options to choose from. The choice you make will be based on your target market and where they will be looking. It will depend on your marketing budget and your marketing objectives.
Marketing Methods
The Promotional mix indicates the marketing methods available to your business. These can be digital or non-digital.
Non-digital methods include direct selling, radio ads, billboards, flyers or posters, public relations if it is an event.
Digital marketing includes social media, content marketing, email marketing, websites, search engine optimisation, Pay per click (PPC) and mobile marketing.
Click on the link below to learn about these options and watch the videos provided.
➡Review Knowledge Question 6
Cost- Benefit Analysis
There are many different promotional activities to choose from. How do you know which one is best for you? A great tool is the “Cost-benefit analysis”.
The cost benefit analysis is a systematic process of evaluating the desirability of a decision by weighing up the benefits and costs. It is like a pros and cons list.
There are financial and non-financial benefits and costs to any decision you make. It is important to weigh these up and decide which promotional activity will gain the best results for your business.
➡Review Task 2 Assessment 2
Market Monitoring and performance
It is important to measure the effectiveness of your promotional activities. You want to see a return on investment (ROI). This video and the links attached will explain it further.
➡Review Knowledge Question 7
Analysing Promotional Activities
Evaluation is an important part of marketing: it helps you eliminate ineffective strategies and develop a plan to grow your business.
If you refer to your Marketing Plan you would have set some marketing objectives that outline what results you want to achieve from your promotional activities.
Marketing objectives can relate to:
- changes in sales
- increased profit margins
- increased brand awareness
- increased visitation to a website
- increased conversion rates
- return on investment
- increased market share
Whatever the measurement is that you choose, you need to measure the effectiveness of any promotional activity you try.
Marketing is gaining the maximum awareness from minimum spend. Montitoring your results will indicate if your message is being heard.
Business Study Task 1
Business Feasibility
A feasibility study assesses the potential for success of a proposed plan or project by defining its expected costs and projected benefits in detail.
Business Study task 2-Create an email in the box provided addresses to your assessor/mentor
- What promotional activities will you use to target your market?
- Who is responsible for the implementation of these?
- Conclude how and who will monitor your marketing plan.
Business Study task 3
Document 4- Assessment 3- Business Plan Instructions
- Write your full name on the top of the first page “Participant name:”
- Attach a completed copy of your Small Business Plan as requested.
- Attach the completed parts of your Financial Plan that are requested.
Check off the Assessment Submission Checklist
This will ensure you have completed all tasks and paperwork correctly and we won’t need to return anything before marking.
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