National 5 Business Management 2.1 Marketing

• 1. 2.1 Marketing N5 Business Management

2. Definition of MarketingMarketing is the management process of identifying, anticipating and satisfying customer needs profitably - Philip Kotler 3. The Marketplace The Marketplace brings together both buyers and sellers-A stall Corner shop Auction Mail order Supermarket Internet 4. TASKQuestion Bank1-5 5. Marketing Marketing is not just about selling.Marketing is knowing about and satisfying customer needsMarketing can increase sales & maximise profits.It can also improve the image of the firm. 6. TASKQuestion Bank6-10 7. What is market research? Market Research is studying or investigating a market, to find out what consumers want, or whether customers are satisfied with a product and the level of service provided. 8. Class Survey Show Me Boards BoysHollyoaks or MOTD?Lady Gaga or Eminem? Coke or Pepsi? Top Gear or X-Factor? Favourite Colour?BoysGirlsGirls 9. My Predictions! Girls will like Hollyoaks, Boys MOTD.Eminem may be too old to be popular! Lady Gaga probably liked more by girls.Would expect Coke & Pepsi to be even but Coke narrowly ahead. Doubt there will be a gender imbalance.Would expect most boys to prefer Top Gear over XFactor.A study by Hallock (2003) revealed that 57% of men and 35% of women view blue as their favourite colour. Yellow is second for men. 10. Bases of Market Segmentation AgeGenderLifestyleIncomehttp://www.bbc.co.uk/news/technology-24803378 11. Market Segmentation Who is Crispola aimed at?What is target marketing? 12. Market Research in Action Video on Market Research from The Apprenticehttp://www.youtube.com/watch?v=GY mhV9H4UloHow do you think they did?What would you have chosen? 13. Market Research Methods Observation watching consumerbevhaviour Groups asking people in depth qualitative questions on a topic Focus(aka Surveys) asking people questions on a topic (one to one, by phone, by post, or online) Questionnaires 14. TASKQuestion Bank11-27 15. Questionnaire Design Rules Only one question at a timeKeep question simple & clear to understandQuestions should be free from bias (not leading)Keep questionnaire short 16. ICT Task We are going to buy in one type of smart phone to sell to pupils in the school What key questions do we need to find out? MAKE/BRAND FUNCTIONS AGES GENDERYou will now work in groups of 3-4 and complete your Questionnaire Design sheet 17. What we are looking for Questions that will let us know aboutthe respondents age & gender The type of smart phone they like Extra features they expect (ie camera, video, 3G or 4G) Colours they like Price they would pay Service provider? Data plans text & minutesYou have 10-15 minutes to design the survey! 18. Marketing Mix Produc tPriceTarget MarketPromotionPlace 19. Marketing Mix Otherwise known as the 4 Ps:Product what you are going to make or sell Price what you will charge customers Place where you will sell the product/service Promotion how you let customers know about the product/service 20. TASKQuestion Bank28-30 21. USP USP stands for Unique Selling PointThis means a feature that makes stand out from the crowd. FedEx guaranteeing on time delivery Skys technological expertise Apples unique design is a USPCan you think of any others? 22. New Product Development Market Research is used to provide information for firms to develop new products.Develop a superior product Create a USP Prototypes & testing Alterations Patents & Copyrights Product launch & commercialisation 23. New Product DevelopmentIdea GenerationDevelopmentPrototype & TestingModificationsLaunch to Market 24. TASK Question Bank31-39Go FurtherCreate a presentation called Product Heaven and Product Hell outlining 5 successful products & 5 product failures. 25. Branding Branding is when a product is well known and memorable.It may make good use of logos, slogans, a unique design or a high quality product. 26. Cardiff City In 2012, after being taken over by a Malaysian business man, Cardiff aka The Bluebirds controversially changed its home kit colours from blue to red in order to appeal to a wider market.The club crest would also now include a Red Welsh Dragon.Supporters were furious. http://www.bbc.co.uk/sport/0/foo 27. Branding AdvantagesDisadvantagesCustomer loyalty Good image Premium Pricing Can add to family of productsHigh advertising costs One mistake can tarnish brand Loyalty can be fickleNew Coke 28. TASKQuestion Bank40-43 29. The Product Life Cycle 30. Product Life Cycle Draw and label the diagram.Describe what happens at each stage in terms of sales, profit, costs and time. 31. Product Lifecycle This outlines the common growth and decline of a product over time. It may be just a record of sales, but it is important to be able to act on this information.Not all products follow this... Fads and classics are different.But how do we keep a product from becoming obsolete? 32. But how? 33. Extension Strategies ChangeProduct Change Price Change Place Change Promotion Change Packaging 34. TASKQuestion Bank44-50 35. Price Pricing Strategies Long Term Strategies Premium PriceCompetitive PriceLow PriceShort Term Strategies Psychological Pricing Cost Plus Pricing Penetration Pricing Promotional Pricing Demand-orientated Pricing Destroyer Pricing 36. TASKQuestion Bank51-57 37. Place Where to locate?High street or shopping mall?Bricks and mortar or online?What are the impact on sales and costs? 38. Place Distribution ChannelsThere is a new channel now. From Manufacturer Etailer Consumer 39. TASKQuestion Bank58-61 40. Thereare 3 things that matter in property. Location, location, and location.- Attributed to Lord Harold Samuel, Real Estate Tycoon. 41. Place factors to consider Finances Competitors Exclusivity Government grants Infrastructure Availability of resources & labour Manufacturing process Distribution 42. GROUP TASKThe Government are going to build a new generation of High Speed Rail called HS2. 43. Proposed lines completed by 2033.Cost of 32bn 44. Beijing to Guanghzou completed December 2012A distance of 2,298 km 45. N5 Bus Man 2.1: Marketing BEST Ltd 48 46. GROUP TASKIn teams prepare a report on:The advantages & disadvantages of HS2. Where should it be located and why. Why it costs so much and why it takes the UK far longer than China N5 Bus Man 2.1: Marketing BEST Ltd 49 47. This Chinese resident refused to move house for a new motorway 48. Place - Distribution By road, rail, air or sea?Decided by:Cost Infrastructure Product/service type 49. TASKQuestion Bank82-85 50. Promotion This involves letting people know about your product/serviceWord of mouthAdvertisingSales PromotionsPublic Relations (PR)Social Media 51. Advertising Advertising tries to inform, influence and persuade customers into buying products and services.Advertising can be in print, TV, radio, billboards and social mediaAdvertising is controlled by the ASA Advertising Standards Authority 52. TASKDesign a promotional flyer using Publisher or Word for a new environmentally friendly electric car.You must sell the benefits to the customers. 53. Sales promotions including: Sales Free samples Coupons Competitions Advertising on: TVRadio Newspapers Magazines Billboards Posters WebsitesOther methods including: Public relations Personal selling Direct mail (junk mail!) Trade fairs e.g. motor show Point of sales displays Window displays Packaging Branding Sponsorship Leaflets & brochures Flyers 54. TASKQuestion Bank96-97 55. Factors Affecting Marketing Internal FactorsFinanceLabour TechnologyExternal FactorsPoliticalEconomicSocialTechnologicalEnvironmentalCompetitive 56. TASKQuestion Bank98-103