The Role of Marketing
Marketing is the way in which a firm identifies, fulfills and maintains the demands of its consumers in order to achieve a firm's goals. Broadly speaking, the marketing department will focus on 3 general aims:
The way in which the marketing department achieves these aims could be through:
Customers may change their spending habits for many reasons. Watch the short video below and answer the following questions.
There are many effects that changing consumer habits can have on firms.
On profits: On efficiency: On market research
Competition refers to the amount of firms challenging for consumers to buy their particular product instead of a rivals'. Recent decades have seen a sharp increase in the level of competition firms face owing to:
Effects of Competition
Increased competition can cause firms to react in different ways. A lot of these changes are positive for consumers. Read the following article
Niche and Mass Marketing
Companies can tailor the way they market their products, depending on the type of business they are. They could either use niche marketing or mass marketing
Obviously the use of these types of marketing depends on the products your are selling. Niche marketing has its advantages, such as:
Look through the following examples of advertising and for each answer the following questions:
Extension Task: Look at the market segmentation circle. It shows the different types of people that purchase a company's product. The larger the circle, the more people are in that segment.
Types of Market Research
Market research can be a very broad term; it is any way a firm attempts to achieve its goals by finding information out to do so. This will include information on competitors, consumers, products and the market in general. We can divide up the types of market research into
The type of market research required depends upon a firms aims. We can also catagorize research as being either
The type of market research a firm conducts, will depend upon what type of information they are looking to get.
Types of Primary and Secondary Research
Primary research takes many forms
Secondary research also takes many forms
Factors that affect the accuracy of research data
For primary research this could include:
Market Research Analysis
Market research results can be presented in many ways, such as:
Look at the following data tables and use the questions to help you analyse the data. You should then discuss what you think the information is showing you. If you are unsure how to do all of this, visit our store to purchase the revision material!
The Marketing Mix: Product
The Marketing Mix is the use of price, promotion, placement and product (the 4 P's) to achieve a firm's marketing aims. Each of these P's is essential to creating a brand, attracting customers and retaining them.
Look at the items in the link above:
Packaging is also an important part of the product as it:
Brand Image can be defined as the way in which consumers view the product a firm produces. Watch the video entitled 'Branding and Brand Image' and answer the following questions.
Product Life Cycles
Product Life Cycles are designed to show the stages a product goes through and can be used to see the lifespan of a product (how long it is going to last).
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Look at the video entitled 'Pricing Strategies'
Read the following article and answer the questions below
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Which Price to Choose?
When a firm decides which price to choose it needs to think of the following things:
Price Elasticity of Demand
This is the relationship between a change in price and a change in quantity demanded:
Price Discrimination seeks to make use of elasticities. Price discrimination is charging different prices to different users or market segments for the same product. If you know that someone needs a product, then their demand will be very inelastic. You can therefore put the price up for these people, whilst for people that don't need it or even want it, you could lower the price as their demand is elastic. In each case your revenue would go up. This is done for things such as cinema tickets (pensioners pay less, working earners pay more) or airline tickets. This is sometimes also known as dynamic pricing
Using the above image explain:
Promotion involves attracting, informing and maintaining customers through visual and non-visual means. We can catagorise promotion as being either above the line (meaning it attempts to reach as many people as possible thorugh mass media, or below the line (meaning it attempts to reach out to specific customer groups or market segements directly
Above the Line Promotional Forms
Below the Line Promotional Forms
For more informtion on these forms and their advantages and disadvantages don't forget to check out our Revision Guide available in the store (or just click here)
Legal Marketing Restraints on a Firm
Any marketing strategy must operate within the law. There are several marketing laws which should be taken into consideration, intended to protect the consumer. These are known as Consumer Protection Laws: