Download 1. Marketing recap - Portlethen Academy

MANAGEMENT OF
MARKETING
MARKETING RECAP
LEARNING INTENTIONS/
SUCCESS CRITERIA
LEARNING INTENTIONS:
SUCCESS CRITERIA:
To understand the role of:
•
•
•
•
•
•
Marketing
Market Research
The Marketing Mix
Product Research and
Development
•
•
in the activities of an
organisation
•
I can describe and give
examples of a market.
I can explain the role and
importance of marketing in an
organisation
I can describe the methods of
market research and give their
advantages and disadvantages
I can describe the 4 elements of
the marketing mix
I can describe the steps to be
taken in product research and
development.
REMINDERS!
We have learnt quite a bit about markets
and the functional area of marketing
already, so let’s remind ourselves of what
we know so far.
Answer the questions on the next slide in
your jotters.
QUESTIONS
1. What is a market?
2. What is the role of marketing in a business?
3. What activities are undertaken in the Marketing
functional area?
4. Why is marketing important to a business?
5. Describe the marketing mix and give examples of how it
works.
6. Describe the two methods of market research and give
the advantages/disadvantages of each method
7. Describe the stages of Product Research and
Development.
ANSWER 1
A MARKET for a good or service exists when
CONSUMERS (people who have money and want
products) and SELLERS (people who have things
to sell for money) are in contact with each other
and are able to buy and sell it.
SOME MARKET EXAMPLES ARE:
shops, auctions, market stalls, mail order,
selling via the internet (e-commerce), TV
shopping channels
ANSWER 2
The role of MARKETING in a business is to:
• IDENTIFY the CURRENT goods and
services that consumers want;
• ANTICIPATE the goods and services that
consumers will want in the FUTURE;
• create products to SATISFY these current
and future wants.
ANSWER 3
Marketing activities include:
Market Research
Market Segmentation/Target Marketing
Marketing Mix decisions, eg Product
Development, Pricing, Placement and
Promotion
ANSWER 4
Marketing is important because if it is done properly then it
can bring the following benefits:
• SURVIVAL (all businesses need to satisfy their
consumers or they will fail)
• POSITIVE BUSINESS IMAGE (from advertising and
promotions)
• INCREASED CONSUMER SATISFACTION (from
provision of goods and services they want)
• INCREASED USE OF THE BUSINESS BY
CONSUMERS (consumer loyalty)
• INCREASED PROFITS, BUDGETS OR DONATIONS
(from consumer loyalty)
ANSWER 5
The marketing mix is the combination of the product, how it
is promoted, the price it is sold at and the places where
customers can buy it. This is the 4 Ps – PRODUCT,
PRICE, PLACE, PROMOTION.
Example – luxury products eg designer clothing, would
have a high selling price, be promoted in quality magazines
eg Vogue and be available for sale only in high-end retail
outlets eg Harrods, House of Fraser, to attract the kind of
consumers who like to buy them.
ANSWER 6
Two methods of market research are FIELD RESEARCH
and DESK RESEARCH.
Field research involves direct contact with potential
customers eg by phone, postal survey, internet survey,
face-to-face survey.
The advantages of this are that the information gathered is
up-to-date and accurate. The disadvantages are that it is
time-consuming and expensive to collect the information
using this method.
ANSWER 6 CONT’D
Desk research involves looking at data that has already
been collected for another purpose but can be used for the
Businesses own purposes, eg Census, Electoral Roll,
phone book, magazine articles, internet websites,
competitors adverts and brochures.
The advantages of this method are that the data can be
found quickly and cheaply. The disadvantages are that
the data may be inaccurate or out-of-date.
ANSWER 7
Product research and development goes through
the following stages:
• Coming up with the idea/doing market research
• Designing the main features of the product
• Building a prototype of the product and testing it
• Improving the prototype in light of test results
• Test marketing the product to get customer
feedback
• Deciding on the correct marketing mix
• Launching the product on the market