3.3: marketing

• product


  product life cycle:

  1. development ; market research, high costs no profit
  2. introduction ; high advertising costs, yet to hit break even
  3. growth ; rising sales and population
  4. maturity ; peak sales and profitability
  5. decline; saes fall and profits decrease
• in the maturity and decline stage of the product life cycle, the business must focus on maintaining and protecting its market share, so extension strategies need to be used
• product


  boston matrix

  • high growth & high share ; question marks - new products and need investments to succeed
  • high growth & low share ; dogs - short term profit but unlikely to be a massive success
  • high share & low growth ; cash cows - mature and do not need marketing, they bring in lots of product
  • low share & high growth ; stars - need to invest highly in marketing to help it keep growing
• physical

  • decor
  • cleanliness
  • website design
  • staff
  • layout
  • safety
• physical


  the way a business displays itself will give customers impressions that help build their thoughts of the company.
• physical


  if a business is unsuccessful in decorating its surroundings in a way to appeal to customers (high quality environment in expensive shop) otherwise this will effect footfall
• process


  businesses prioritise certain aspects of their processes to match in line with their target market demands. aldi prioritises their low prices more than their environment
• people

  • if employees are polite and kind the customer will have a positive experience.
• people

  if using e commerce the speed of response (3.4) is important if an enquiry is made, efficient and well explained responses lead to satisfaction
• place


  direct selling - manufacturer to consumer (used in small businesses)

  indirect (1) - manufacturer to retailer to consumer

  indirect (2) - manufacturer to wholesaler to retailer to consumer

  direct (agent) - manufacture to agent to consumer (usually comission)
• promotion

  • social media
  • PR
  • film
  • radio
  • bill boards
  • merch
  • viral marketing
  • personal selling
• price skimming - new anticipated products are set at high prices which increases sales, profit and brand image
• price penetration - new products at low prices to gain market share and increase sales volume
• competitive pricing - selling prices that are either below or the same as competitors.
• dynamic pricing is when a business changes the price of a product or service depending on the demand (off peak vs peak)
• cost plus pricing is when the selling price is set at a fixed percentage above the cost of production to help gain profit
• sales volume is the number of units sold in a specific time
• demographics are subgroups of the population
• market share - the % of a market that the business takes up from their total shares
• advertising - the z line


  companies will put their logos on the bottom right so that when we read ads, it is the last thing we see
• what is the importance of marketing

  • customer awareness
  • target specific audiences
  • engage audiences
  • boost market share
• sales value is the prices charged for items when they are sold.
• market size is the amount of individuals in a certain market segment who could be potential buyers
• functional objectives relate to the specific functions of a business and are designed to support the achievement of corporate objectives
• marketing objectives are the goals that a business sets for its marketing activities in a given time period
• market growth


  change in market size /original x100
• percentage change


  diff / original x 100
• brand loyalty is when customers choose the business over others in the market; and return to them and their products
• market segmentation is the process of dividing a market into smaller groups of people who have similar needs and wants
• behaviour segmentation

  • reasons of purchase
  • frequency
  • time of purchase
  • methods
• socio economic groups


  A - high managerial

  B - intermediate

  C1 - supervisory

  C2 - skilled manual

  D - semi or unskilled

  E - elderly, students, unemployed
• extrapolation is the process of drawing conclusions about the future based on past data
• why interpret market data

  • inform decisions
  • understand the market
  • evaluate the past
• primary data is collected first hand by the researcher
• secondary data is already existing data, made by one researcher which is used by another
• market targeting is evaluating potential attractiveness to each segment of the market and then choosing the most attractive segment to target
• product positioning is developing detailed product positioning for selected segments. each segment uses a unique marketing mix
• psychographics are the characteristics of a person's personality, attitudes, and interests that influence their buying behavior
• how to segment an audience

  1. interviews
  2. surveys
  3. customer data
• focusing on demographic research can lead to discovering gaps in the market and opportunities for new products