Marketing

business activities designed to ensure customers receive the correct product

The business can provide a product or service that a customer will buy.

factors that influence a customers decision to buy
Promotion
Product
Place
Price

Need to withdraw the product
To amend the product
To lower the price
Damage the brand name

when a market is divided into different groups of needs and wants

Meet specific needs
Identify target market
Set an appropriate price

By gender
By age
By location
By income
By life stage

Gathering, analysing and processing data relevant to marketing decisions

To collect information about:
Demand
Market share
Competition
Target market

Data based off things other than numbers: opinions and views

numerical data

data gathered for the first time

using data that already exists

Quick and cheap
Provide large scale information about the population

May not be specific to that business
May be out of date
Also available to competitors

Questionnaires
Customer feedback
Telephone survey
Focus groups

Internet research
Printed press (newspapers etc.)

Can call when it is convenient to the business
Quick and easy

Cannot see bodylanguage
People are reluctant to answer phones and give answers

Can see facial expressions
People are more likely to be honest

Time-consuming

Can get in-depth responses
Very specific

Small groups may not represent your target customers

Product
Price
Place
Promotion

The design, specifications and features of a product

Communicating the product through advertising

Payment terms as well as a reasonable price for the product, compared to competitors and good value

The way in which products are distributed

setting a high price for a new product when it first enters the market

Helps the business obtain high costs of development.
The price is then reduced to attract new customers

Low initial price for a product to achieve fast sales

Good at getting high market share and establish a market leader

Matching the prices that competitors charge

when a product is sold at a loss in the hope that customers will buy other items from the business where they will make a profit

where products are priced by covering costs plus a percentage

It ensure the business will cover costs and make a profit

costs
demand
competition
stage in the product life cycle
strength of the brand

In general, increase in price = fall in demand and vice versa

To meet evolving customer demands

Expensive
High risk

unique selling point
an aspect of a product that makes it unique against rivals

how consumers view a product

A business can attract more sales and charge more for a good image

Generate an idea
Check the idea
Develop the product
Trial the product
Launch it

Development
Introduction
Growth
Maturity
Decline

when the product is developed and being tested

When the product is launched and sales begin

When products start to sell faster

Sales begin to slow down

When sales start to fall

cutting prices
more advertisment
updating packaging
adding more features

the collection of products that a firm produces

a way of analysing a product's share and growth in their market

Low market growth
Low market share

Low market growth
High market share

High market growth
Low market share
Unsure of the success

High market growth
High market share

Advertising
Sales promotions
Public relations
Personal selling

Newspapers
Online
Radio
TV
Billboards

reaches a lot of people
inform customers
remind customers
change the image of a product
show the benefits of a product

Expensive
One-way communication
Can't physically sell

Discounts
BOGOF
coupons and competitions
free gifts
free samples

Gives a reason to buy
Helps to differentiate

Short term strategy
Reduces revenue
Causes a negative brand name

finance available
competitor actions
nature of the product
nature of the market

Suppliers the good or services

merchandising companies that sell to retailers

Shops that sell direct to the customer

It extends the reach of businesses including international markets

when there is a direct link from the producer to the customer

Customers can order anytime
Customers can order from anywhere

Logistical costs
Need to handle more returned goods
Needs to ensure the security of the website

No intermediary between the producer and the customer

When there is one intermediary between the producer and customer

When there are two intermediaries between the producer and customer

Access more customers
Customers can compare what is on offer with more range

More price at each stage so product is more expensive
Producer loses control