© Boardworks Ltd 2009 1 of 31 Teacher’s notes included in the Notes PageFlash activity Icons key:...

© Boardworks Ltd 20091 of 31

Teacher’s notes included in the Notes PageFlash activity

Icons key: For more detailed instructions, see the Getting Started presentation

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Extension activities

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Marketing


Learning objectives

What is marketing?

Why do businesses conduct market research and what methods do they use?


Marketing

Marketing is the management process responsible for identifying, anticipating and satisfying consumers’ requirements profitably.

Copy this fantastic definition!


Market research

Market research is used by businesses to identify what customers need and want. This is done by examining the opinions and buying behaviour of different market segments.

Primary research involves collecting and analysing original information found specifically for a purpose. The opinions of customers are gained directly, e.g. by surveys in person, by post, on the phone and through observation.

Secondary research involves analysing information from existing material, e.g. websites, databases, newspapers, magazines, Internet sales and loyalty cards.

What is market research?

What are primary and secondary research?

List as many secondary sources as you can.


• http://www.youtube.com/watch?v=G0ZZJXw4MTA

http://www.youtube.com/watch?v=G0ZZJXw4MTA

http://www.youtube.com/watch?v=G0ZZJXw4MTA


Primary and secondary research

Good this isn’t it!


Quantitative and qualitative research


Qualitative and Quantitative Primary Research

• Pages 268 to 270• What is and what is the purpose of

Qualitative and Quantitative Research? (look to the definitions).

• Quick notes on: Focus group, observation and recording, test marketing and consumer surveys?–


Go back to our definition of marketing.

1. Some marketing companies start with qualitative primary research before commencing quantitative research. Why?

2. Why might firms choose to undertake both primary and secondary market research before entering a new market? S2002 (10)


Marketing Lesson 2

• Objectives:– What is market segmentation?– Why segment the market?– Mass and Niche marketing.– What is sampling?– Why sample?– What are the different techniques of

sampling?


Market segmentation

A market may be made up of lots of consumers with very different characteristics – for example, the holiday market is made up of people looking for a variety of holiday experiences.

The aim of market segmentation is to produce goods and services that meet the needs of these customer groups more effectively. – Notes please.

Segmentation analysis attempts to divide the market into different groups or segments of customers with similar characteristics that may influence the kind of products they buy.• How many segments of the holiday

market can you think of?


Ways of segmenting a market

Notes!

There are a number of ways that a market can be broken up into segments:

gender – men or womenage – e.g. toddlers, teenagers, elderlysocial class – e.g. middle classlocation – local, national, globalculture or religion – often relevant to food products.

Characteristics are only relevant for segmentation if they have an effect on customer needs.


• Why do companies attempt to segment the market?– What is market segmentation?– What is marketing?


Mass vs Niche Marketing

• Niche marketing – identifying, anticipating and satisfying the requirements of a very small segment of the market. Eg. Versace, Ferrari, armoured cars, stair lifts.

• Mass marketing – selling to the entire market. Eg. Coca-Cola, Microsoft.

• What are the advanatages and disadvantages of selling to a niche and mass market.


Primary Research – The problems

• Hands up if:-– You like Mozart?– You think football in the 1960s was better than

today?– Justin Bieber is awesome.– French is more important than Spanish.

– Are the quantitative results that we just got representative of the entire school?


Sampling

• In order to get a ‘sample’ that will reasonably represent our chosen market segment we need to choose the people that we ask carefully. This is called ‘sampling’.

• Pg 270-272• What is sampling? Why is sampling

needed?• Make notes on: Random, Stratified and

Quota sampling.


• Explain why a business might use quota sampling in market research. [3]


• Discuss how a clothes retailer might segment the market for its goods. [12]


The Marketing Mix

Also known as the most important concept in business

studies!


Marketing mix

What will happen if a business chooses the wrong marketing mix?


Basic Marketing Mix

• What is the marketing mix?– What is its purpose? How many Ps and what

do they mean?

• Pick a company or product and analyse the marketing mix. In pairs, produce a brief presentation on your chosen company or product to present to the class.


PRODUCTProduct Differentiation and USP

Product Life CycleBranding

Product positioning


• http://www.argos.co.uk/static/Search/ID72/14418661/c_1/1%7Ccategory_root%7CKitchen+and+laundry%7C14418476/c_2/2%7Ccat_14418476%7CIrons%7C14418661/pp/20/q/IRON/s/Price%3A+Low+-+High.htm

http://www.argos.co.uk/static/Search/ID72/14418661/c_1/1%7Ccategory_root%7CKitchen+and+laundry%7C14418476/c_2/2%7Ccat_14418476%7CIrons%7C14418661/pp/20/q/IRON/s/Price:+Low+-+High.htm







Marketing mix: product

Product: This refers to the good or service that a firm sells and its features, such as design, functions, colour, size etc.

Making products stand out from rivals helps firms compete – this is known as product differentiation.

USPs – Unique Selling Point. Your produce has something that none others do!

A good product is at the heart of a successful marketing mix – without it, sales will eventually fall.


Differentiation and USPs

• What is a USP?– Give examples of USPs.

• What is differentiation?– Give examples of products and explain how

they are differentiated.

• Is differentiation a uniquely ‘product’ concept?


The Product Life Cycle


The Product Life Cycle - Implications

• Revenue will vary.• Cash flow will vary.• Production requirements will vary.• Demands on staff will vary.• Different prices should be used at different

stages of product life cycle.


The Product Life Cycle - Solutions


The Product Life Cycle - Extension


Branding

What is branding? How can it help business? p321

Branding attempts to create a clear identity or personality for a firm and/or its products in order to make it stand out from others in the market.

Increasing brand loyalty is an important objective for many firms as it means existing customers can be retained even if prices rise. Strong brand loyalty is also important if a firm wants to maintain or improve its share of a competitive market.

This can be done by using a recognizable brand name, logo, colour, etc. Advertising can also be used to create a brand image that customers will remember.


Product Positioning

• Consumer perception of a product or service compared to competitor


• Product positioning– Useful to identify nearest competitors.– Can identify gaps in market.

• Note:– Can use different criteria.

Product Positioning


Product Positioning

• Draw a product position graph for– the soft drinks industry using the criteria, price

and healthy/standard image.– Private schools in Lima. Whatever criteria you

desire.


PRICESupply and demand graphsPrice Elasticity of Demand

Pricing Strategies


Marketing mix: price

Price: This needs to reflect the image of the product – whether it is a luxury or a budget product – but also offer the customer value for money.


Pricing strategies


Pricing strategies 2

• Price discrimination.• For each of the 6 pricing strategies

describe an example.


Price Elasticity of Demand


Supply and Demand Graphs

This is Economics (not entirely sure why this is here).


Marketing mix: price, place, promotion

Price: This needs to reflect the image of the product – whether it is a luxury or a budget product – but also offer the customer value for money.

What is meant by an ‘integrated marketing mix’?

Promotion: Its role is to inform customers about the product and its features, in a way that persuades them to buy it, using techniques such as advertising, sales promotions, public relations and merchandising.

Place: This involves getting the product to the right customers when they need it via the correct distribution channels.


Distribution channels

First Direct was the first UK bank to sell to customers by phone. State one benefit for the

company of doing this.

A business needs to make decisions about where its products will be sold and how they will get to consumers.

Some service providers, such as restaurants and hairdressers, need direct contact with customers, making the choice of location important. However, the Internet has made location less important for some businesses.

Many manufacturers sell goods to customers via wholesalers and/or retailers. This can increase market coverage, but long distribution channels increase the price paid by the end consumer.


Promotion

Promotion is the term used to describe how a business communicates to customers: what it sells, how it will benefit them and why they should buy it from that specific business.

advertising

publicity

sales promotions

personal selling (part of sales).

There are four main types of promotion. Do you know what they are?


Advertising

A business promotes itself by advertising. This involves placing adverts in the media, including:

TV, radio and cinema

Internet

magazines and newspapers

billboards

posters.

Adverts are useful for targeting specific market segments. Cadbury, for example, advertises during prime time television in order to promote its products to millions.

What factors would the Marketing department need to consider when creating an advert?


Publicity

Publicity involves creating an image or an impression by attracting the attention of the media.

press releases

sponsorship

award ceremonies

arranging speeches.

Puma sponsor the English Schools Football Association. Why do you think they do this?

Popular ways in which businesses generate publicity include:

Unlike adverts, publicity is not paid for directly, so it can be unpredictable how effective it will be at targeting customers.


Sales promotions

Sales promotions are ways in which a business tries to make its goods or services attractive to customers.

discounts

money-off coupons

competitions

free gifts

special offers

loyalty rewards.

When are sales promotions commonly used?

Common sales promotions include:


Case study: Iceland

This is a sales promotion which Iceland used in its stores to promote the Merlin Entertainment Group’s attractions.

Design your own sales promotion leaflet for Thorpe Park.


Types of promotion

Would large and small businesses use the same forms of promotion?


AIDA

Businesses often promote their products to customers by using the AIDA principle:

Attention

Interest

Desire

Action.

Describe how AIDA is used in this chocolate advert. Then design your own advert using AIDA.


Case study: Coca-Cola

What types of promotion are used by Coca-Cola in these images?

Some businesses spend a lot of money on promotion.

‘Coca-Cola’ and ‘Coke’ are registered trade marks of The Coca-Cola Company and are reproduced with kind permission from The Coca-Cola Company.


Who wants to be an A* student?


Glossary


Different types of markets

Identify three factors that affect the demand for goods and services.

A market is simply a situation where the producer (of a business) provides a good or service to those who want it and are usually prepared to pay for it.

Today, modern technology such as the Internet means that even the smallest businesses can access customers around the world. There are many different types of markets:

basic commodities – e.g. oil, goldconsumer goods – e.g. clothes, PCsindustrial goods – e.g. machinery, lorriesservices – e.g. banking, hairdressing

© Boardworks Ltd 2009 1 of 31 Teacher’s notes included in the Notes PageFlash activity Icons key:...

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