The notes for IB Business and Management HL note, for unit 4. Everything described in detail in a simple language. Find useful resources that you need to know in preparation for your exams.
International Baccalaureate
Business Management Higher Level Notes
Table of content
4.1 The role of marketing
Definition and nature of marketing ………………………………………………………. 4
Marketing goods and services ……………………………………………………………. 6
Market and product orientation …………………………………………………………... 7
Commercial marketing and social marketing ……………………………………………. 8
The market ……………………………………………………………………………… 10
Market share ……………………………………………………………………………. 11
Marketing objectives ……………………………………………………………………. 12
Marketing strategies and changes in customer preferences ……………………………... 13
4.2 Marketing planning
Elements of a marketing plan …………………………………………………………… 14
The 4 Ps of the marketing mix ………………………………………………………….. 16
The marketing mix and marketing objectives …………………………………………... 19
Target markets and market segments …………………………………………………… 22
Targeting, segmentation and customer profiles ………………………………………… 22
Niche and mass markets ………………………………………………………………… 25
Position (perception) maps ……………………………………………………………… 26
Unique selling point (USP) ……………………………………………………………... 28
Differentiation …………………………………………………………………………... 28
4.3 Sales forecasting
Sales, trends and forecasting …………………………………………………………… 31
Benefits of sales forecasting …………………………………………………………….. 34
Limitations of sales forecasting ………………………………………………………… 35
4.4 Market research
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, The role of market research ……………………………………………………………... 35
Primary market research ………………………………………………………………... 37
Secondary research ……………………………………………………………………... 40
Ethical considerations of market research ………………………………………………. 43
Qualitative and quantitative market research …………………………………………… 44
Sampling methods ………………………………………………………………………. 45
Results from data collection …………………………………………………………….. 48
4.5 The four Ps (product, price, promotion, place)
Product in the marketing mix …………………………………………………………… 49
Product life cycle ………………………………………………………………………... 49
Extension strategies and the product life cycle …………………………………………. 52
Boston Consulting Group (BCG) matrix ……………………………………………….. 53
Branding ……………………………………………………………………………… 55
Aspects of branding ……………………………………………………………………... 57
Brand value ……………………………………………………………………………... 58
Packaging ……………………………………………………………………………….. 59
Price …………………………………………………………………………………….. 60
Promotion ………………………………………………………………………………. 62
Above the line promotion ……………………………………………………………….. 63
Below the line promotion ……………………………………………………………….. 66
Promotional mix ………………………………………………………………………… 69
Technology and promotion ……………………………………………………………... 72
Guerrilla marketing ……………………………………………………………………... 73
Place (distribution) ……………………………………………………………………… 75
Channels of distribution ………………………………………………………………… 76
4.6 The extended marketing mix
The marketing of services ………………………………………………………………. 81
People …………………………………………………………………………………... 81
Processes ……………………………………………………………………………… 82
Physical evidence ……………………………………………………………………… 83
4.7 International marketing
2
, Entry into international markets ………………………………………………………… 84
Opportunities and threats of international marketing …………………………………… 85
The implications of international marketing ……………………………………………. 87
Cultural differences in international marketing ………………………………………… 88
Globalization and international marketing ……………………………………………… 89
4.8 E-commerce
Features of e-commerce ………………………………………………………………… 90
e-commerce and the marketing mix …………………………………………………….. 91
Types of e-commerce …………………………………………………………………… 94
The benefits of e-commerce …………………………………………………………….. 94
The costs of e-commerce ………………………………………………………………... 95
KEY TERMS ………………………………………………………………………………. 97
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, 4.1 The role of marketing
Definition and nature of marketing
: needs are the essential necessities that all humans must have to survive; food, shelter, warmth
and water
: wants are human desires, i.e. things that people would like to have
: marketing exists to address people’s needs and wants. Meeting the needs and wants of
customers is particularly important for businesses aiming to make a profit
: the marketing department of an organization tends to have four main or generic objectives;
§ Ensure that the right products are supplied to fulfill the needs and wants of customers
§ Set the correct price so that customers can afford to buy the product (and to ensure that
they do not buy from a rival business)
§ Distribute (or place) the products conveniently for customers to buy the product
§ Ensure that there is adequate and effective promotion to convince customers to buy the
firm’s products
: marketing definition is commonly used as it covers the various roles of marketing;
§ Marketing is a management process so it requires people to take responsibility for
decision-making
§ Marketing involves identifying the needs and wants of customers. This can be done
through market research and data analysis
§ Marketing involves anticipating or predicting what customers might want in the future
§ Price, availability and quality are essential factors that customers consider when
assessing value for money. Satisfied customers are more likely to become loyal
customers
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