Theme 1: Marketing & People This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders. 1.3 Marketing mix and strategy Subject content Marketing strategy What students need to learn: a) The product life cycle b) Extension strategies: product promotion c) Boston Matrix and the product portfolio d) Marketing strategies appropriate for different types of market: mass markets niche markets business to business (B2B) and business to consumer (B2C) marketing e) Consumer behaviour – how businesses develop customer loyalty

Marketing strategy What is it? Can you find an example?

Types of markets Niche marketing Niche marketing is when a firm targets a small subsection or previously unexploited gap in a larger market Niche marketing may give a business first mover advantage and allow them to charge a premium price Should chocolate makers be targeting a niche or a mass market?

Mass marketing When a firm targets the whole of a market rather than a particular segment Mass marketing can give a business a high volume of sales but often at a low price

Types of markets Industrial markets are where businesses are selling to other businesses; business to business (B2B) The technical specification of the product and service provided by as sales person or account manager is likely to be more important than the brand

Consumer markets are where businesses are selling to the public, business to consumer (B2C) The product and the price may be seen as of equal importance to the promotion but more important than place e.g. does it matter what channels the product went through to reach the consumer

Consumer behaviour  Business will want to understand consumer behaviour and build customer loyalty  This can be achieved using a range of methods including:  Customer service  People are the employees involved in dealing with customers before, during and after a sale

Consumer behaviour  Physical environment  the design and features of the actual place where a transaction takes place  Aspects of the physical environment might include:  Cleanliness  Design e.g. ease of movement around the premises or ability to find what you are looking for  Facilities  Ambience  Loyalty schemes  Reward cards e.g. collect points, collect stamps for a free product  Saver schemes Do loyalty cards work? How many loyalty cards do you have? Are you loyal?