Marketing MIx Strategy

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Gift Simau Assessment 2 Block 4
Table of Contents
Question 1 ............................................................................................................................................. 2
Question 2 ............................................................................................................................................... 3
Question 3 ............................................................................................................................................... 6
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Question 1
(Institute of Marketing management, 2020) An increase in raw materials which is

used the production of good and services .As what has happened in South Africa in
2019 the cost of fuel increased and they was severe loading shedding meaning that
companies had to use generators to substitutes electricity thereby increasing
production costs to them .For example Mini Cooper might increase its prices due to
increase in prices of steel. Transportation of steel was affected by Covid 19 thereby
increasing transportation cost. This cost is likely to be passed to the consumer of
Mini Cooper
(institute of Marketing Management,2020) stated that the objectives of the Mini

Cooper might influence pricing .If the objective is on return on investment the Mini
Cooper will charger higher prices for their Cars .Mini Cooper is viewed as an
exclusive brand by consumers thereby it must have a higher prices as compared to
other small cars like Kia Picanto
(Institute of Marketing Management, 2020) explained that when organisations are

setting up prices for their goods they have to consider pricing which their competitors
are offering .Mini Cooper south Africa must take into account prices which Toyota,
VW and Nissan are charging, this will give them a clear picture of how the market will
respond if they charge a higher price more than its competitors offerings.
The year 2020 has been a tough year for consumers and organisations, the Covid
19 pandemic has brought the new normal in how business is done and how
consumers do shopping. Covid 19 has negatively impacted the South African
economy due to losses in revenue from tourism etc. The effect has cascaded to
consumers who now have less disposal income to spend on motor vehicles and
leisure .Most consumer their interest is now on essential items .During this era of
Covid 19 consumers will see it as unacceptable for organisation like Mini Cooper to
raise prices.
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Question 2
(Institute of Marketing Management, 2020) stated the following six steps necessary
when setting prices:
1. Select price objective
They are three pricing objectives available to the artisan bakery which are profit
oriented pricing, sales orientated pricing and lastly status quo pricing .I would select
the Sales orientated pricing
Sales Oriented Pricings Objective
This pricing objective is focused on growing the market share of the artisan bakery
and increasing sales .we will focus on charging lower prices for our products so that
they will become affordable to our target market thus building market share through
seasonal discounts and promotions .
2 Determining demand
The law of demand states that when the prices is low consumers tend to buy more
as shown on the below diagram i.e. when the price is low for example a loaf of bread
costing ZWL $15 demand will be higher consumers demanding 8 loafs of bread
when price reaches ZWL $40, consumers will demand 3 loaves of bread .It is better
to price our bread were they is a higher demand
Price elasticity of demand
Consumers are elastic to any prices changes of bread according to the below graph
if prices are rised from $15 to 40 consumers will buy zero to three loaves.
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Determining Costs
(Institute of Marketing Management, 2020) explained that they are various costs
organisation must be aware of which include the following:
Fixed cost- these do not change irrespective of whether the organisation is

producing products or nor for example for the artisan bakery rent do not change if
they manufacture 10 loafs or 2000 loafs of bread per week ,rent will remain the
same.
Variable cost change with the level of production activity for example if the Artisan
bakery manufacturers 10 000 loaves of bread per day .they will require more labour,
flour and electricity
Average cost: how much did it cost to produce one unit for example how much it will
cost the bakery to produce a single loaf of bread.
4: Analysing competitors' costs, prices and offers

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(Institute of Marketing Management, 2020) emphasised that “Customers are bound

to compare prices during the consumer decision-making process. It is, therefore,
important to understand the pricing level and strategy of competitors.”(p.131)
It is important to benchmark how your competitors are doing in term of cost, pricing
etc. The artisan bakery must find out how much its competitors are pricing their
standard loaf of bread for example Lobels bread cost ZWL $ 28 and proton ZWl 30
.This information will assist us in determining how much we should charge our
standard loaf.
Select a pricing method
(Institute of Marketing Management ,2020)b organisations must align their products

prices to those which competitors are offering .Artisan bakery must be able to
match its products pricing to those being offered by Lobels bakery, proton bakery
etc.
Set the price
Based on the information gathered on the five stages of this process, we will match
our pricing to those which Proton Bakery is charging to its standard loaf that is ZWL
$ 30 but however the most appropriate price will be at the equilibrium point where
demand curve and supply curve meet on the above diagram that is ZWL 27 for a
loaf.
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Question 3
(Institute of Marketing Management, 2020) explained the five components of

strategy listed below:
Scope
The scope of the strategy deals with the industries the organisation wishes to enter
,for example Econet wireless Zimbabwe entered the Zimbabwean banking and
financial industry when it acquired TN bank and established Ecocash. Ecocash is a
mobile financial services which allows the sending and receiving of money .It was
part of the scope of their long term strategy. The scopes also deals with issues of
mission and vision of the organiosation.Mission is the raison detre ,the reason why
the organisation exist and the vision is where the organisation wants to be in the
future .
Econet(n.d) Mission :To serve Zimbabwe by pioneering ,developing and sustaining

,reliable ,efficient and high quality telecommunications of uncompromising world
class standards and ethics.
Vision : “To provide telecommunications to all the people of Zimbabwe
Goals and Objectives
Goals are long term plans, that are qualitative in nature for example a goal might be
Econet wireless wants to increase market share and profitability .Objective are
quantitative in nature .Objective must be smart i.e. they must be specific,
measureable, realistic and timed .For example a smart objective for econet wireless
will be to Increase market share by 10% by the end of 2021.
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Resource deployment
Resources are scarce and must be managed with care .Developing a strategy
requires an allocation of adequate resources. When formulating strategy it is
important to develop organisation structures .Well developed organisation structures
identifies the span of control, chain of command and this assist when resources are
being allocated across departments. For example Econet wireless uses a matrix
organisation Structure ,which ensures an efficient allocation of resources .
Identification of a sustainable competitive advantage.
When developing a strategy organisation must identify their sources of competitive

advantage .Competitive advantage must be sustainable meaning that competitors
cannot copy or imitate for example Econet has a competitive advantage of quality on
its data and voice services against its competitors Netone and Telecel .
Synergy
(Institute of Marketing Management ,2020) emphasised that “synergy exists

when the firm’s businesses, product markets, resource deployments and
competencies compliment and reinforce one another”.(p.40
Synergy enables the organisation to have improved performance .Departments

within the organisation must work together as a single unit in order to achieve
organisational goals. For example they must be cooperation and internal
marketing in all departments of Econet
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References
Institute of Marketing Management Graduate School. (2020) MAR101B.Marketing

One 101B Learner Guide. South Africa: Institute of Marketing Management
Graduate School
Institute of Marketing Management Graduate School. (2020) Module 4 .Marketing

Mix Strategy. Marketing Planning Process . South Africa: Institute of Marketing
Management Graduate School.
Econet (n.d) “About us” . Available on https://www.econet.co.zw/about-us/vision-

mission-values (accessed on 24 December 2020)

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Page 1 of 8

Gift Simau Assessment 2 Block 4

(Institute of Marketing management, 2020) An increase in raw materials which is

(institute of Marketing Management,2020) stated that the objectives of the Mini

(Institute of Marketing Management, 2020) explained that when organisations are

1. Select price objective

Sales Oriented Pricings Objective

Price elasticity of demand

Fixed cost- these do not change irrespective of whether the organisation is

4: Analysing competitors' costs, prices and offers

(Institute of Marketing Management, 2020) emphasised that “Customers are bound

Select a pricing method

(Institute of Marketing Management ,2020)b organisations must align their products

Set the price

(Institute of Marketing Management, 2020) explained the five components of

Econet(n.d) Mission :To serve Zimbabwe by pioneering ,developing and sustaining

Vision : “To provide telecommunications to all the people of Zimbabwe

Goals and Objectives

Identification of a sustainable competitive advantage.

When developing a strategy organisation must identify their sources of competitive

(Institute of Marketing Management ,2020) emphasised that “synergy exists

Synergy enables the organisation to have improved performance .Departments

Institute of Marketing Management Graduate School. (2020) MAR101B.Marketing

Institute of Marketing Management Graduate School. (2020) Module 4 .Marketing

Econet (n.d) “About us” . Available on https://www.econet.co.zw/about-us/vision-

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