BSBMKG418 – Develop and apply knowledge of marketing communications industry

Assessment 1

A) An industry overview

marketing definition and the key principles underlying marketing activities and strategies

Marketing is defined as "the total of activities involved in the transfer of goods from the
producer or seller to the consumer or buyer, including advertising, shipping, storing, and
selling."

An alternate definition is paraphrased from memory of an introductory business text is:

Marketing is all activities conducted to prepare for sales. Sales is all activities required to
close the deal. Shipping and customer satisfaction would be included in sales to avoid the
customer from reversing or unclosing the deal.

Thus Marketing can be categorized as a branch of business as well as a social science. We

buy goods (thus becoming the buyer/consumer) from a vendor (or producer/seller), creating
a transaction. In the past, marketing involved traveling salesmen, while in modern times,
marketing is more likely to involve television, the internet, and other forms of media
bombardment.

As we progress in this age of technology it is vital for us to understand marketing and its
place in the world. Understanding and applying the principles will be beneficial to the
businessperson and the layperson.

the broad structure of the industry, including competitive forces and key players

 Threat of New Entrants

High profits in any industry are always attractive to potential rivals, as it attracts them to
grasp some stake from the profit pool. However, this is not always easy, due to high entry
barriers in some industries, and a variety of obstacles for potential newcomers. Existing
companies approach this issue by taking preventive actions. The most common action is to
keep them out of the market by keeping prices as low as possible. Keeping prices low
reduces the incentive of others to enter the business, as profit margins become less
attractive. This is especially common for companies who would have a hard time reaching
economies of scale on a new product.

 Bargaining Power of Suppliers

The concentrated position of suppliers: Concentration of suppliers is a situation where

market participants are dependent on a single or a small number of suppliers. Suppliers can
become dominant, simply because their partners do not have many options to shift to a
different supplier.

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 Bargaining Power of Buyers

This is when buyers in dominant positions gain bargaining power against industry players
and use this advantage to lower prices which then, leads to lower profitability of the
industry. Some of the factors that contribute to the dominance of the buyers are similar to
those we cited for supplier power: high concentration of buyers, the existence of many
identical (non-differentiated products) products, low switching costs to other vendors, etc.
For example, customers of cell phone carriers or television companies are considered to
have strong bargaining power, due to the very low cost of switching buyers.

 Threat of Substitute Products

If there are substitutes for goods or services provided by a certain industry, companies may
deter a price increase due to a substitute threat. As the price of the original product
increases, the demand for the alternative would increase too, causing some customers shift
to the substitute products. This is one of the reasons why the substitution effect restricts
producers' ability to raise the prices of their products. For example, commercial aviation and
railway transportation are substitutes of each other. In each case, if airline ticket prices
increase significantly, a portion of travelers will prefer to travel by train rather than by plane.
The substitute threat is also high when the costs of switching to a substitute product are low.

 Competition Among Existing Participants

Competition among existing industry participants has two main aspects: intensity and
dimensions of competition. The intensity of competition determines the industry's
profitability level. The more intense the competition, the more value from industry
participants’ profitability is transferred to the customers.

the range of departmental structures, including several examples

Organizational structure refers to the way that an organization arranges people and jobs so
that its work can be performed and its goals can be met. When a work group is very small
and face-to-face communication is frequent, formal structure may be unnecessary, but in a
larger organization decisions have to be made about the delegation of various tasks. Thus,
procedures are established that assign responsibilities for various functions. It is these
decisions that determine the organizational structure.

In an organization of any size or complexity, employees' responsibilities typically are defined

by what they do, who they report to, and for managers, who reports to them. Over time
these definitions are assigned to positions in the organization rather than to specific

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individuals. The relationships among these positions are illustrated graphically in an

organizational chart. The best organizational structure for any organization depends on
many factors including the work it does; its size in terms of employees, revenue, and the
geographic dispersion of its facilities; and the range of its businesses (the degree to which it
is diversified across markets).

There are multiple structural variations that organizations can take on, but there are a few
basic principles that apply and a small number of common patterns. The following sections
explain these patterns and provide the historical context from which some of them arose.
The first section addresses organizational structure in the twentieth century. The second
section provides additional details of traditional, vertically-arranged organizational
structures. This is followed by descriptions of several alternate organizational structures
including those arranged by product, function, and geographical or product markets. Next is
a discussion of combination structures, or matrix organizations. The discussion concludes by
addressing emerging and potential future organizational structures.

the range of activities and functions that marketers perform (identify at least seven or
eight activities or functions)

The marketing department has overall responsibility for growing revenue, increasing market
share and contributing to company growth and profitability. In a small business, the
marketing department may just be one person, or it may include a marketing director or
manager plus marketing executives responsible for functions such as advertising,
publications or events.

 Strategy

The senior member of the marketing department takes responsibility for setting marketing
strategy in line with overall company strategy and objectives. The strategy may be to
increase share in a specific market sector, for example, to enter a new sector, or to open a
new channel of distribution, such as the Internet, to reach a wider geographical market. The
marketing department reaches agreement on strategy with the board or senior
management team before planning campaigns in detail.

 Market Research

Market research is a key responsibility for the marketing department. Research helps the
company identify market opportunities and gain a better understanding of customer needs.
It also helps them understand competitors’ strengths and weaknesses so they can take
action to protect business with existing customers or win business from weaker competitors.
The department can carry out its own research by studying industry reports, market data on

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websites, or by contacting customers and prospects to survey their needs and attitudes.
Alternatively, they can brief a market research firm to carry out the research.

 Product Development

The marketing department works with Internal or external product development teams to
develop new products or improve existing ones. The department analyzes sales of existing
products and identifies gaps in the product range where there may be opportunities for the
company. Marketing employees provide development teams with information on customer
needs and preferences to help them identify the features or improvements to incorporate in
new products. Later in the product development process, the marketing department sets
prices and prepares plans to launch the product.

 Communications

Marketing departments plan campaigns and develop communications material to promote

products and services to customers and prospects. Depending on their available budgets,
they may plan advertising campaigns, develop e-mail marketing programs, create
promotional content for the company website, write press releases or product publications,
such as product leaflets, company brochures, product data sheets or customer newsletters.
They may write and design the promotional material if they have skills within the
department or they may appoint advertising agencies or design firms to produce the work.

 Sales Support

Cooperation between the sales and marketing departments can improve sales performance
and speed up business growth. The marketing department can provide sales teams with
high-quality leads by running advertisements that include a reply mechanism, such as a
coupon or telephone number, or by encouraging visitors to the company website to register
their details in return for a free newsletter or special report. Marketing also prepares
presentations for the sales team and supplies them with stocks of promotional material to
give to customers and prospects.

 Events

In some companies, marketing departments are responsible for organizing events, such as
exhibitions, seminars, sales conferences or customer hospitality events. They plan the
logistics of the event, booking exhibition booths or meeting facilities, for example, and
provide event material, such as displays, presentations or handouts. They also promote
external events to customers and prospects to ensure successful attendance.

the role of marketing within society, including ethical and legal obligations of marketers

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Marketing process bring new variety of useful and quality goods to consumers. This raises
the standard of living. Better marketing gives room for mass production. Under mass
production, cost of production will be low and hence price of the article will be low, since
price is low people can buy more goods for their money. This will result in a higher standard
of living.

 Marketing helps to achieve, maintain and raise the standard of living of the society
 Marketing increases employment opportunities
 Marketing helps to increase national income
 Marketing helps to maintain economic stability and development
 Marketing in connecting link between the consumer and the producer
 Marketing helps in creation of utilities

identification of at least three relevant associations and networks.

 Australian Association of National Advertisers

The AANA represents the rights and responsibilities of companies and individuals involved in
Australia’s $30 billion a year advertising, marketing and media industry. In the common
cause of responsible advertising and marketing, the AANA today also serves to protect the
rights of consumers in ensuring commercial communication is conducted responsibly within
prevailing community standards. At a time of unprecedented change in advertising,
marketing and media, the AANA provides ethical leadership, advocates continuous
improvement in commercial communication practice, and promotes and protects freedom
of commercial speech.

 Australian Marketing Institute (AMI)

The leading organisation for marketing professionals in Australia. The Australian Marketing
Institute’s record of service to the marketing profession goes all the way back to the
institute’s origin in 1933. Over the intervening years we have continually evolved to meet
the changing needs of marketers, delivering services to help members maximise their
professional growth. Today the AMI represents professional marketers throughout Australia,
including practitioners from all marketing functions and industries. Through our unified
voice, the Institute has established strong links with business, academia and government to
become the voice of the marketing profession. The AMI runs marketing training courses and
holds a national conference each October and many local events throughout the year.

 Australian Direct Marketing Association (ADMA)

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Australia’s leading direct marketing association. Since our foundation in 1966, ADMA’s
mission has been to create an environment for the advancement of responsible, effective
and creative multi-channel marketing. During our history, the industry we represent has
been transformed technologically, legislatively and socially, placing increased demands on
marketers but also delivering new opportunities to connect with customers. And in that time
ADMA has evolved too. Our roots are in traditional direct marketing, but today we’re a very
different association and one that will keep developing apace with our the needs of our
membersADMA holds an annual marketing conference in Sydney each May.

B) Information regarding the focus of chosen organization

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the departmental structure and operating environment in the relevant organisation

PepsiCo’s organizational structure has been reformed several times to address changing
global market conditions. The company’s current corporate structure reflects the business
aims of global expansion and leadership. These aims highlight PepsiCo’s mission and vision
statements. PepsiCo’s strategies are also manifested in how its organizational structure
supports international growth. A firm’s organizational structure defines the system and
design of business components, and how these components interact to fulfill the firm’s
mission and vision. In PepsiCo’s case, the organizational structure enables control over the
expansive reach of the company around the world, considering significant differences among
market conditions.

Features of PepsiCo’s Organizational Structure

PepsiCo originally had a hierarchical organizational structure in its early years. However, after
a number of key mergers and acquisitions, along with global expansion, the company has
changed its organizational structure accordingly. The following are the main characteristics
of PepsiCo’s organizational structure:

Market divisions

Functional corporate groups/offices

Global hierarchy

Market Divisions. The most prominent feature of PepsiCo’s organizational structure is its
market divisions. These divisions are based on two variables: business and geography. In
terms of business, PepsiCo’s maintains one global division for Frito-Lay and another global
division for Quaker Foods. In terms of geography, the company has divisions for the
Americas, Europe, and other regions. The following are the market division in PepsiCo’s
organizational structure:

PepsiCo Americas Beverages

Frito-Lay

Quaker Foods

Latin America Foods

PepsiCo Europe

PepsiCo Asia, Middle East & Africa

a brief description of three typical roles in the organisation

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Functional Corporate Groups/Offices. This characteristic of PepsiCo’s organizational structure

refers to basic business functions. The company has global or corporate offices for these
functions. PepsiCo’s objective in having functional groups is to ensure corporate control and
rapid implementation of policies and strategies. An Executive Vice President or Senior Vice
President heads each of these groups. The following are the main functional corporate
groups/offices at PepsiCo:

Global Categories and Operations

Global Research and Development

Human Resources

Finance

Government Affairs and Legal

Talent Management, Training and Development

Communications

Global Hierarchy. PepsiCo’s organizational structure also features a hierarchy that spans the
global organization. A hierarchy typically supports monitoring, control and governance at the
global/corporate level.

a stakeholder analysis relevant to the organisation and its marketing strategy (a

description of all relevant internal and external stakeholders)

PepsiCo’s strategy to address stakeholders’ interests is integrated in the company’s Global

Citizenship policy, which serves as its primary strategy for corporate social responsibility
(CSR). In the stakeholder model of business, firms affect and are affected by stakeholders. In
PepsiCo’s case, these stakeholders have expanded in terms of the variety of their demands
alongside the company’s international growth and expansion. Nonetheless, PepsiCo’s
corporate social responsibility strategy adapts with the changing business environment. As
such, stakeholders’ interests remain satisfied. PepsiCo’s corporate social responsibility
initiatives reflect the needs of the business as well as the concerns of stakeholders, thereby
supporting a holistic approach to global business management

PepsiCo’s CSR Initiatives & Stakeholders’ Interests

PepsiCo’s corporate social responsibility strategies are supported based on how stakeholders
impact the business. The company’s prioritization of stakeholders is stated in its corporate
beliefs and purpose of business. The following are PepsiCo’s major stakeholder groups,
arranged according to the company’s prioritization:

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Consumers and customers (top priority)

Communities

Employees

Investors

Government (least priority)

Consumers and Customers. Consumers and customers have the highest priority in PepsiCo’s
corporate social responsibility strategy. This stakeholder group determines the financial
standing of the company in terms of revenues. Consumers and customers are interested in
high quality and reasonably priced products. Customers in business partnership with
PepsiCo are interested in stable and improving business performance. Based on the
significance of these stakeholders, PepsiCo uses continuing innovation processes to improve
its products, such as products under the Pepsi brand. For example, some of the company’s
products now have less salt, less fat, and less sugar content to improve their effects on
consumer health. PepsiCo calls these efforts “Human Sustainability.” Thus, PepsiCo’s
corporate social responsibility strategy flexibly addresses the interests of consumers as
stakeholders.

Communities. Part of PepsiCo’s thrust in corporate social responsibility is to ensure that it

always has a positive impact on society. As such, the company considers communities as a
second-priority stakeholder group. Communities are significant stakeholders because they
influence the consumers’ and employees’ perspectives about PepsiCo. The interests of these
stakeholders include corporate support for community development programs. The PepsiCo
Foundation provides financial assistance for such programs. The Foundation invests in
organizations like Diplomas Now, which supports education and career development in city
neighborhoods. Also, the firm expands recycling and waste management programs. These
corporate social responsibility approaches are part of PepsiCo’s “Environmental
Sustainability” policy.

Employees. PepsiCo believes that employees are significant determinants of the company’s
long-term growth. This stakeholder group is interested in career development and fair
compensation. To address such concerns, PepsiCo’s “Talent Sustainability” policy goal is “to
provide a safe and inclusive workplace globally.” This goal highlights fairness and employee
welfare in the company’s human resource management approaches. Thus, PepsiCo’s
corporate social responsibility activities directly address some of the major concerns of
employees as stakeholders.

Investors. As stakeholders, investors are interested in PepsiCo’s higher financial

performance. Investors significantly affect the company through availability and cost of

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capital. PepsiCo believes that its focus on consumers/customers, communities, and

employees contribute to optimal financial performance. As such, the company always aims
to address the concerns of consumers, employees and communities, while using financially
sound strategies. PepsiCo’s corporate social responsibility strategy adequately covers the
interests of investors as a major stakeholder group.

Government. Governments are significant in terms of imposing rules and requirements on

PepsiCo’s business. This stakeholder group is interested in ensuring that companies comply
with regulations. PepsiCo’ global legal team and public relations team address issues related
to governments. Furthermore, the company has policies for bottlers, distributors, and
suppliers to ensure that they comply with government requirements. Thus, the interests of
governments as stakeholders are included in PepsiCo’s corporate social responsibility
strategy.

Reference

https://www.statista.com/markets/

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https://www.employment-studies.co.uk/system/files/resources/files/hrp1.pdf

http://panmore.com/pepsico-stakeholders-csr-analysis

http://panmore.com/pepsico-organizational-structure-analysis

https://www.pepsistuff.com/?&__locale__=en

Develop a Professional Development Plan Description:

Career plan

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Current role: Marketing staff

Description Skills and attributes Legal obligation of Information source

role
 Developing  Intimate As the 'brand A marketing
strategies and understanding of guardian', brand manager is
tactics to get the traditional and managers maintain someone who
word out about emerging brand integrity across manages the
our company and marketing all company marketing of a
drive qualified channels marketing initiatives business or
traffic to our front  Excellent and communications, product. They can
door communication and may manage a be responsible for
skills portfolio of products. several services or
 Deploying  Ability to think products, or be in
successful creatively and charge of a single
marketing innovatively product. A
campaigns and  Budget- marketing manager
own their management needs to have an
implementation skills and outgoing,
from ideation to proficiency gregarious, and
execution  Professional spontaneous
judgment and nature. In concert
 Experimenting discretion that with these traits,
with a variety of comes from they need to be
organic and paid years of highly focused,
acquisition experience in the detail-oriented,
channels field and very
conscientious of
meeting budget
restraints and
timelines.

Target role: Marketing manager

Description Skills and attributes Legal obligation Information source

of role
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 Sales Skills: Now Knowing the  Analyzing

 consulting clients that 100% of B2B rules and laws competitors
about campaign buyers relating to  Identifying the
requirements repeatedly touch advertising to audiences
and objectives the web (both avoid the  Preparing content
 formulating vendor's sites penalties that strategy
strategies and those of 3rd apply to  Creating a
 passing parties) businesses that marketing plan
proposals on throughout the misleads  Creating editorial
 agreeing buying process, customers. calendars
timescales and marketing must  Implementing and
budgets stay active from budgeting content
 supervising staff "cold to close". marketing tools
 monitoring and No more filling  Following content
chasing work the top of the marketing trends
progress funnel and  Analyzing and
 writing reports passing leads off content
 analysing, to sales. performance
interpreting and  Social Media
presenting Skills: It's no
results secret that social
media
dramatically
changes the
buyer-seller-
influencer
dynamic. But
only those
actively
participating in
social media
tangibly
appreciate the
differences
between old-
style one-way
media
conversations
and the group
interactivity.
 Journalism/
Storytelling Skills:
With buyers
getting the
majority of their
information from
the web and with

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sales enablement
increasing in
priority, there's
no end to the
need for juicy,
targeted content.
And, that
storytelling also
comes into play
in campaign
design.

Skill gaps

Value communication. Marketing is becoming more integrated than ever before, as

marketing professionals have to be able to work with accounting, technology, sales and
other teams.

Opportunities

Opportunity Description Time frame

Meetings for detailed Describe corporate policies. 1 month

discussion and discussion. Management and details of
the operation. To truly
understand.

Training to enhance skills Training to build a working 1 months

capacity to help develop and
implement effective and
progressive.

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