Introduction to marketing Use in conjunction with the Portakabin case study summary THE TIMES 100

Marketing Marketing is... ‘The management process responsible for identifying, anticipating and satisfying customer requirements profitably’ Chartered Institute of Marketing

Segmentation Splitting up the market into groups of people with similar needs and characteristics Products and marketing activities can be tailored to the needs the segments Markets can be segmented by age, gender, lifestyle, income and geography

Awareness - raising awareness of a product AIDA Marketing campaigns often take into account the AIDA model: Awareness - raising awareness of a product Interest – exciting interest in the product Desire – creating desire for the product Action – encouraging a purchase

Market research Market research is the process of collecting data about customers and competitors. There are two types of market research: Primary research – gathering first-hand data, e.g. through questionnaires and focus groups Secondary research – gathering existing data, e.g. through trade journals and government statistics

Market research and Portakabin What are the two key performance indicators that Portakabin focuses its research on? The two KPSs are: Customer satisfaction – customer surveys determine the level of customer satisfaction. Net Promoter Score – a tool that shows how popular the organisation is with existing customers

Marketing mix The marketing mix refers to the elements needed for effective marketing. It is often referred to as the four Ps: Product Price Promotion Place

Portakabin’s fifth ‘P’ Other than Product, Price, Promotion and Place, what other ‘P’ does Portakabin add - and why? Positioning is the fifth P. Portakabin positions itself at the top of the market, offering high quality products and services. This is because it creates customer confidence and adds value to the products.

Product ‘Product’ refers to the functions and features of a good or service Should satisfy the needs of the customer May have a Unique Selling Proposition (USP) ‘Product’ also includes a range of factors such as packaging, quality, warranties, after-sales service and branding

Price The price of a product will depend on: The cost to make it The amount of profit desired Other objectives of the business The price competitors charge The price customers are willing to pay Is there a high demand? Is demand sensitive to changes in price?

Promotion The aims of promotion are to: Raise awareness Encourage sales Create or change a brand image Maintain market share Promotional activities include advertising, sales promotion, sponsorship, public relations and direct mail

Promotion and Portakabin What methods of promotion does Portakabin use? Portakabin uses trade magazines, direct mail, email, public relations, open days and targeted web pages.

Place Products should be conveniently available for customers to buy ‘Places’ include: Stores Mail order Telesales Internet The use of e-commerce (promoting and selling on the internet) has grown massively over the last few years

Place and Portakabin What consideration is made when locating Portakabin Hire Centres? Hire centres are never more than one hour’s drive away from Portakabin customers. This means that service teams are located close to customers so issues can be quickly resolved.

Useful resources Introduction to marketing lesson suggestions and activities Portakabin case study Portakabin website