Specification – What you need to know for this topic!
4 Marketing
This section focuses on identifying and satisfying customer needs in a changing and
competitive environment.
Content Explanation of content
4.1 An understanding of the terms market, market orientation, product orientation,
The marketing, market segments and market research and analysis of the role that
market each plays in the identification and satisfaction of customer needs in a changing
and competitive market.
An understanding of the main elements of the marketing mix and how they
combine in satisfying customer needs in a changing competitive environment:
price – an understanding of the main pricing strategies and when they might be
applied – supply/demand, cost plus, penetration, competition, skimming,
promotional
promotion – an understanding of its aims and of its main elements:
below the line promotion techniques – an analysis of their role and in what
circumstances they might be applied. Techniques will include price
reductions, gifts, point of sale after sales, free samples, competitions
types of advertising – an understanding of persuasive and informative
advertising and an analysis of when they might be applied
types of advertising media – an understanding of the main types of
advertising media and an analysis of their appropriateness in different
circumstances. Media will include TV, radio, cinema, newspapers, magazines,
posters, leaflets, Internet
public relations (pr) – an analysis of its role in the promotion of a business
place – an understanding of the importance of place in the marketing mix and
an analysis of the options available. Options will include: channels of
distribution , methods of distribution (department stores, chain stores,
discount stores, superstores, supermarkets, direct sales, mail order, Internet)
product – an understanding of the terms goods and services. An understanding
and analysis of the key factors of branding, packaging and the product mix and
how they help determine affect the success of the product. An understanding
of the term product life cycle and an analysis of how it can be used in decisions
about the marketing of products.
An understanding of the constraints imposed on advertising by the Advertising
Standards Authority and by legislation.
An understanding of the role of market research and its role in identifying
customer needs in a changing and competitive market This will include the ability
to define, differentiate between and analyse the suitability of the use of primary
and secondary research/data.
An understanding of the design, use and presentation of questionnaires and of the
analysis and evaluation of findings from questionnaires.
, The Market
Product/Market Orientated Business
A product orientated approach means the business develops products
based on what it is good at making or doing, rather than what a customer
wants. This approach is usually criticised because it often leads to
unsuccessful products - particularly in well-established markets.
A marketing orientated approach means a business reacts to what
customers want. The decisions taken are based around information about
customers’ needs and wants, rather than what the business thinks is right
for the customer. Most successful businesses take a market-orientated
approach.
Market
A market is a group of consumers, who could be individuals, businesses or
governments who might buy this type of product – for example, the
market for running shoes or the market for fresh flowers.
Marketing
Marketing is often defined as:
“The process of identifying, anticipating (predicting) and satisfying
customer needs profitably”
,What does it mean?
Identifying – finding out by using marketing research about
current products, the possibility of new products, and about
current markets and possible new markets.
Anticipating (predicting) – analysing the data collected and using
the managers’ skills to judge what might happen in these markets
and how the products might be suited or changed, adapted or
updated.
Satisfying customer needs – making sure the person, business or
government is happy with what they are buying, will not complain
and will be happy to buy again if appropriate.
Profitably – adding value to the product so when sold, the price of
the product is greater than cost of the inputs.
All of these marketing activities take place in a market.
Market Research
Market research is the process of gaining information about customers,
competitors and market trends through collecting primary and secondary
data.
Market research is essential because a business needs to know as much
as it can about its potential customers in order to reduce the risk of
producing or selling the wrong goods. It also needs to know what
competitors are doing, what price to charge and how to advertise and
promote the product.
The role of Market research
Businesses need to find out from their customers whether they like their
existing products and if they would be prepared to buy a new product. If
they do not ask their customers what they think and act upon the
information they risk producing goods and services that are not what the
consumers want. To avoid this they carry out MARKET RESEARCH.
Market research must be ongoing as the market is always changing.
Market research helps firms to plan ahead rather that to guess ahead.
This helps the business to find out answers to questions such as:
What does the market want?
, Would customers be prepared to buy new products?
Who are their customers likely to be? the target market
How much are customers willing to pay for products?
What makes customers buy one product rather than another?
In which ways can their products be improved?
Does their promotion and packaging work to attract customers?
Who are their competitors, and what do they produce?
Where do the products sell best?
How is the market changing?
Primary (Field) Research
Primary (Field) research involves the collection of primary data –
information which has not yet been collected. It is collected specially for
the particular piece of research.
Examples of primary research methods:
Observation
Interviews
Questionnaires
Consumer panels
Focus groups
Product sampling
Questionnaires
Questionnaires are the most common form of survey used. A
questionnaire contains a series of questions which gather primary
marketing research data for the business
A questionnaire can be carried out in the street, by telephone, by post, by
e-mail or through a newspaper.
Points for questionnaires
The business can decide exactly which questions it wants to ask.
Everyone is asked the same questions.
If they are used face-to-face or over the telephone, there is two
way communication, which helps to make sure that the respondent
understands the questions.
It is easy to analyse the replies using information technology.
Points against questionnaires
