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STAGE 2 BUSINESS AND ENTERPRISE
FOLIO TASK 4 – ESSAY - MARKETING
Marketing is more than just advertising and plays an important role in the success of a
business. This essay will analyse the aim of marketing, the necessary considerations
when developing a marketing plan and the importance for a business to remain ethical
and operate within legal guidelines in their marketing strategies. Newspaper articles
were collected to assess the ramifications of unethical advertising and are attached in
the appendix.
Marketing has the capacity to recognize a product in demand, meet the needs of the
consumer, while making a profit for business. There are many elements to marketing
that help sell the goods and services of a business, but the term is commonly
misunderstood for simply advertising.
In addition to gauging profit demand, a successful marketing plan will also include
analysis of appropriate location from which to distribute the product as well as analysis
of market segmentation. Of all the elements that forge a successful marketing
campaign, timing is arguable one of the most crucial features. Well timed anticipation of
when the consumer market will have a high demand for a product will result in high
sales and profit, but if not timed correctly, the business proprietor may well lose
investment capital.
In order to obtain a clear indication of who the business is focusing on as their target
market, businesses are able to segment the market into geographic, behavioural,
psychographic and demographic areas. This enables a business to be able to acquire
insight into the characteristics of the targeted consumer, and thereby target marketing
practices to suit those consumers.
It is vital to research the geographical segmentation before the distribution of the
business’ product occurs. The location of the consumer will affect habits and choices,
as weather, availability of resources and technology will also influence the customer’s
choice.
Behavioural market segmentation focuses on patterns of observable behavior rather
than surveys on what people would prefer
Page 1 of 8
Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Knowledge and
Understanding
Provides an early
indication of
comprehensive
understanding of
the complex
nature and role of
marketing.
Psychographic market segmentation is based on how the consumer perceives
themselves and accommodates a certain look that the consumer wishes to associate
with. For example, South Australia’s AFL clubs have extended their range of
merchandise from the typical hats, scarves, and guernseys to include such items as
food and drink coolers, picnic rugs, car seat covers and window shades. These items
meet the needs of their main target group, i.e. supporters, and therefore the clubs are
able to sell large amounts of merchandise.
The demographic approach analyses a diverse range of characteristics, usually
Knowledge and
Understanding
Provides early
evidence that
points to in-depth
knowledge and
understanding of
the relationship
between business
theory and
practice, through
the use of a
relevant example.
obtained by the ABS. These include age, income, gender and beliefs. By analyzing
these statistics it may lead to discerning suitable product placement, price and effective
advertising campaigns.
In addition to this market segmentation, consumer choice can be defined as being
affected by two influential categories: external and personal influences (refer to Tables
1 and 2).
Table 1 – External influence on Consumer’s Choice of product
External
INFLUENCES
EXAMPLES
Politics
Climate change concerns – turn to energy efficient light bulbs
Symbol of
Success
Purchasing a sports car
Pressures
Forced to lose weight or suffer heart failure – diet change
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Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Knowledge and
Understanding
Tables 1 and 2
provide evidence
of well-considered
(rather than indepth) knowledge
and understanding
of the relationship
between business
theory and
practice. This is
inconsistent with
other evidence
against this
specific feature.
Table 2 – Personal influences on Consumer’s Choice of Product
Personal
INFLUENCES
EXAMPLES
Wealth
Level of wealth can influence which products and quality of products
purchased
Knowledge
Expertise and research in an area can guide to the correct choice
Needs
purchased
May have infants therefore baby products (nappies) need to be
Self-image
Make up and beauty
As a business markets their product, four marketing strategies are put in place to
ensure that the product has the best chance of generating sales and thereby profit.
The first ‘P’ is for ‘product’. This can be in the form of either goods or services and is
sold to the consumer to generate income for the business Price is the second
marketing strategy and can be an indicator to the products quality – the lower the price,
the lower the quality. Promotion is the third tactic and refers to more than just
advertising Place or distribution is the final strategy employed to ensure successful
marketing. Table 1 provides examples of these four strategies in operation. The
strategy on price for example, shows price comparison between two furniture outlets
where there is a clear difference between the target markets.
Table 3
Strategy
The Four Ps in Operation
Example/Features
Product
use,
Personal Hygiene
Upside down bottle, ready for instant
striking appearance.
Price
Store 1
Furniture Store 1
Furniture Store 2
Price may attract varied markets,
wealthy consumer,
Store 2 average income
Fashion Clothing
To set fashion trends and to promote
Promotion
designers
Stores
Place
trends to
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Supermarket Chain,
Collaboration of resources and
Fuel Suppliers
Fly Buys
reduce costs to attract customers
Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Application
Indicative of
thoughtful
application of
knowledge and
understanding of
relevant business
ideas and
concepts related
to marketing.
As defined by Princeton University the ethical motive is, “Based on ideas of right and
wrong” As marketing strategies are essentially designed to generate higher sales, a
business can become ethically questionable in the promotion of its product.
As described in the Auckland Correspondent, a New Zealand newspaper, “Air New
Zealand gained international publicity by deciding to ‘parade its staff in nothing but
body paint to boost sales”. This marketing strategy, although not illegal, is ethically
debatable as it may have an adverse affect on society. “One person even laid an
official complaint with New Zealand’s advertising watchdog that children would find the
ads ‘disturbing’” Risque marketing strategies can also incur a detrimental effect on the
business as its reputation is placed in jeopardy. This may cause the public to boycott or
protest against the company, diminishing its sales.
Unlike the moral dilemmas of unethical marketing, illegal marketing strategies occur
Analysis and
Evaluation
when a business breaks the law and lies to the consumer on one or multiple details of
Provides evidence
of insightful and
well-informed
evaluation of the
ethical and social
implications and
consequences to
business of
unethical
marketing.
the product. This is known as ‘misleading advertising’, as a business may save
resources by deceiving the customer who believes the product is something it is not.
In an English article written on the computer company ‘Apple’, the business illegally
misled the public on features available on the new ‘iPhone.’ It stated that “all parts of
the internet are on the iPhone”, when in fact, the model shown did not support Flash or
Java, both of which are integral programmes that are essential to the running of many
websites. Legal consequences from misleading advertisements include the removal of
the advertisement from circulation, fines and possible lawsuits if the marketing
campaign caused an individual or business harm. Further consequences of unethical
marketing may result with the business having a damaged reputation and reduced
sales. If a business suffers heavy sales losses then it may be forced to reduce their
employee numbers to avoid bankruptcy, causing a domino effect in both economic and
social terms.
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Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Marketing is of vital importance to the success of a business. Through the development
of a well researched marketing plan, that includes updated statistics on the areas of
segmentation and by incorporating the four P’s, the product has its best chance of
generating high sales and profit for the business. An understanding of the needs of the
consumers and the factors that influence product choice is essential as this ensures a
prosperous business that will thrive indefinitely. However, by promoting unethical and
illegal marketing campaigns, the wellbeing of society, and the reputation and financial
stability of the business is placed in jeopardy.
Word count: 1020
Additional comments
A review of the student’s work provides evidence of:
Communication

comprehensive and highly proficient use of appropriate vocabulary and terminology

consistent and appropriate acknowledgement of a range of sources.
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Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Knowledge and
Understanding
The final
paragraph of this
essay supports the
overall
demonstration of
comprehensive
understanding of
the complex role
that marketing
plays in business.
Reference List
Elements to successful marketing – pg 7 appendix 20/08/09 –
http://www.businesslink.gov.uk
Features of an optimum location – pg 7 appendix –
http://www.businesslink.gov.uk/bdota/action/detail?type
Geographical segmentation – pg 7 appendix – Marketing handout
Behavioural segmentation – pg 7 appendix 20/08/09 –
http://tutor2u.net/business.marketing/segmentation
Australian Bureau of Statistics 20/08/09 –
http://www.abs.gov.au/demographicstatisticsallstates
Product definition – pg 7 appendix 20/08/09 http://www.businesslink.gov.uk/marketing
Price definition – pg 8 appendix
Promotion definition – pg 8 appendix 20/08/09
http://www.businesslink.gov.uk/marketing
Place or distribution definition – pg 8 appendix
Prf Mark Dunn – Princeton University 20/08/09 – http://www.definitions.com/ethics
Aucklandcorrespondent – newspaper 20/08/09 –
http://www.adelaidenow.com.au/unethicalmarketing
Akld cdgt – nspr 20/08/09 – http://www.adelaidenow.com.au/unethicalmarketing
Reuters – from correspondents in London – newspaper 20/08/09 –
http://www.adelaidenow.com.au/misleadingadvertising
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Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Bibliography
Marketing Handout from class.
Internet Sources
http://www.businesslink.gov.uk/bdotg/action/detail?type
http://www.businesslink.gov.uk
http://tutor2u.net/bjusiness/marketing/segmentation
http://www.abs.gov.au/demographicstatisticsallstates
http://www.businesslink.gov.uk/marketing
http://www.adelaidenow.com.au/unethicalmarketing
http://www.adelaidenow.com.au/midleadingadvertising
http://www.definitions.com/ethics
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Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010
Performance Standards for Stage 2 Business and Enterprise
Knowledge and
Understanding
A
Comprehensive understanding of
the complex nature and role of
business and enterprise.
In-depth understanding and
coherent explanation of a variety
of business structures, including
those of small business in a
global environment.
In-depth knowledge and
understanding of the relationship
between business theory and
practice.
B
Well-informed understanding of
the complex nature and role of
business and enterprise.
Some depth of understanding
and clear explanation of different
business structures, including
those of small business in a
global environment.
Detailed and well-considered
knowledge and understanding of
the relationship between business
theory and practice.
C
Informed understanding of the
nature and role of business and
enterprise.
Considered understanding and
competent explanation of
different business structures,
including those of small business
in a global environment.
Considered knowledge and
understanding of the relationship
between business theory and
practice.
D
Some awareness of the nature
and role of business and
enterprise.
Awareness and description of a
business structure, which may be
a small business in a global
environment.
Recognition and some basic
understanding of the relationship
between business theory and
practice.
E
Limited awareness of the nature
or role of business and
enterprise.
Attempted description of a
business structure.
Awareness of a relationship
between business theory and
practice.
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Analysis and Evaluation
Perceptive and discerning
analysis and evaluation of the
factors involved in current
trends, opportunities, and key
issues affecting business and
enterprise.
Insightful and well-informed
evaluation of the economic,
ethical, social, and
environmental implications and
consequences of business and
enterprise practices in different
contexts.
Communication
Coherent and fluent
communication of complex
information and ideas about
business and enterprise to suit
the purpose and audience.
Comprehensive and highly
proficient use of conventions,
vocabulary, and terminology
appropriate to business and
enterprise.
Consistent and appropriate
acknowledgement of a range of
sources.
Well-considered analysis and
evaluation of the factors involved
in current trends, opportunities,
and key issues affecting
business and enterprise.
Clear and well-structured
communication of complex
information and ideas about
business and enterprise to suit
the purpose and audience.
Thoughtful and informed
evaluation of the economic,
ethical, social, and
environmental implications and
consequences of business and
enterprise practices in different
contexts.
Proficient use of conventions,
vocabulary, and terminology
appropriate to business and
enterprise.
Informed analysis and
evaluation of the factors involved
in current trends, opportunities,
and key issues affecting
business and enterprise.
Competent communication of
information and ideas about
business and enterprise to suit
the purpose and audience.
Evaluation of the economic,
ethical, social, and
environmental implications and
consequences of business and
enterprise practices in different
contexts.
Mostly consistent and
appropriate acknowledgement of
a range of sources.
Use of conventions, vocabulary,
and terminology generally
appropriate to business and
enterprise.
Mostly appropriate
acknowledgement of different
sources.
Basic description of one or more
factors involved in current
trends, opportunities, and/or key
issues affecting business and
enterprise.
Some endeavour to
communicate basic information
and ideas about business and
enterprise for a particular
purpose or audience.
Some consideration of the
economic, ethical, social, and
environmental implications or
consequences of business and
enterprise practices.
Inconsistent use of basic
conventions, vocabulary, and
terminology appropriate to
business and enterprise.
Recognition of one or more
factors involved in current
trends, opportunities, or key
issues affecting business and
enterprise.
Attempt to communicate one or
two ideas about business and
enterprise without necessarily
taking into account the
audience.
Limited consideration of any of
the economic, ethical, social,
and environmental implications
or consequences of business
and enterprise practices.
Limited and isolated use of
conventions, vocabulary, and
terminology appropriate to
business and enterprise.
Some acknowledgement of
sources.
Limited acknowledgement of
sources.
Application
Highly proficient use of
technology that meets current
business standards.
Selective and constructive
application of knowledge and
understanding of relevant
business ideas, concepts, and
practices.
Proactive and focused
selection and use of relevant
information from a range of
sources.
Proficient use of technology
that meets current business
standards.
Thoughtful application of
knowledge and understanding
of relevant business ideas,
concepts, and practices.
Well-considered selection and
use of relevant information
from a range of sources.
Competent use of technology
that meets current business
standards.
Competent application of
knowledge and understanding
of relevant business ideas,
concepts, and practices.
Considered selection and use
of relevant information from
different sources.
Basic use of technology which
may not meet current business
standards.
Some endeavour to apply
knowledge and understanding
of one or more business ideas,
concepts, and/or practices,
which have some relevance.
Selection and some use of
information from more than
one source, with some
relevance.
Limited skill in using
technology.
Recognition of the need to
apply knowledge and
understanding of business
ideas, concepts, and
practices, which may have
some relevance.
Attempted use of information
from more one or more
sources, which may have
some relevance.
Stage 2 Business and Enterprise annotated response for use from 2011
874004514 (October 2010)
© SACE Board of South Australia 2010