Business Studies: Marketing

Marketing Role of Marketing Marketing the process of anticipating and identifying the customers wants so the business can find ways to satisfy them profitably. Market Research Market orientated business – It is a business who focuses it’s activity on production processes and the product. This type of business will adopt marketing techniques which will create a need or want for their product. For example, the iPhone is not a necessity but Apple creates it by skillful marketing. Product orientated business – It is a business who focuses on the wants of the customer before developing their product. This type of business will heavily rely on market research to aid their marketing strategy. Types of information: Quantitative information – Data collected in a numerical form. Qualitative information – Data collected is in written form with a lot more detail and precise opinions. Primary research (field research) – New data collected with direct contact with potential or existing customers. Advantages Disadvantages The information is current and therefore more reliable than secondary research which may be out dated. It is very time consuming. The survey would be tailored precisely for what the business wants to find out. It can be expensive as the business will need to find specialists to create the surveys and to find people to interview potential or existing customers. Competitors do not have access to this information therefore giving the business a competitive edge and advantage. It may be biased due to bias interviewing of the potential or existing consumers. Secondary research (desk research) – Information which has already been collected. Advantages Disadvantages It is a cheaper form of market research. It may be out of date and therefore not as reliable. It is less time consuming as the information is readily available. The information may not be relevant to what the business wants to find out It may have a larger sample size than what the business is capable of obtaining through This information is available to competitors. primary research. Market Segmentation Market segmentation – When a market is divided into groups of different needs. This can help with the marketing strategy as the business will be able to target a specific segment in the market. It can be segmented by: ● ● ● ● ● Age Gender Location Income group Lifestyle Mass market; niche market Mass market – A market which has a large number of sales. For example, rice and toilet paper. Niche market – A market which is relatively small with products which are usually specialized. For example, vegetarian and kosher food. Marketing mix Product Consumer goods and services – These are goods which are bought and used by the people. For example, food and furniture. Producer goods and services – These are goods and services for other businesses. For example, the factories machinery and advertising agencies. Purpose of packaging ● ● ● ● It should protect the product It should make the product easy to transport It should be eye-catching for the potential customers to help increase the sales of the product It should contain information about the product Branding To persuade customers to buy the product the business will rely on the branding of the product. Some techniques include: ● ● ● ● A unique name of the product or brand name will distinguish it from other brands and will also help make it memorable. If the customer likes the product and wants to keep buying the same brand again instead of choosing a different brand it is said to have brand loyalty. This is an important part of branding as it will increase sales of the product. It should have a unique package. It will use appropriate advertising to reinforce the brand’s qualities.