Starter activity – what do you already know? 3.1.1. Marketing

P 3.1.1 Marketing 3.1.1. Marketing

Marketing What is marketing? Write what you think it means on a sticky note The process of identifying, anticipating and satisfying customer needs profitably Covers a number of activities including researching the market before deciding on product, price, place and promotion 3.1.1. Marketing

Marketing – Question Time 1. Which one of the following will help a business anticipate customer needs? (1) Lowering price New advertising campaign Focus group Changing packaging design 2. Suggest one alternative method of anticipating customer needs.(1)

PROFITABLY 3. Satisfying 1. Anticipating 2. Identifying MARKETING The process of … 2. Identifying 3. Satisfying PROFITABLY

Marketing – 1. Anticipating customer needs A business will have to ANTICIPATE: What customers’ needs are in advance Put themselves in the customer’s place Any unusual needs How to be polite and accommodating Ensure they enjoy the experience http://www.youtube.com/watch?v=syovKC2eacU&feature=player_embedded You tube Anticipate customer needs 3.1.1. Marketing

Marketing – 2. Identifying customer needs A business will need to clearly know what the customer wants Who are they (target market) and what do they do? How, when, where, why and what do they buy? What do they want from your business? Why will they buy off you rather than the competition? http://www.youtube.com/watch?v=b82Quinl7ac You tube Smarter Marketing: Know your customer 3.1.1. Marketing

Marketing -3. Satisfying customer needs Essential for the business to be profitable Has the product met or exceeded customer needs? Is the service reliable and efficient? Is there an after sales service to look after customer needs and help to deliver repeat custom? 3.1.1. Marketing

Anticipating customer needs Anticipating customer needs at McDonalds Customer What are their needs? A parent with young children Give the children a quick and fun treat Teenagers Business person in a rush Holiday goers at an airport University students City centre shoppers Social area and meal deals Speedy delivery Seating area and convenience Meal deals and value for money Comfortable seating area and range of products 3.1.1. Marketing

Satisfying customer needs Satisfying customer needs at McDonalds Customer How are their needs satisfied? A parent with young children Teenagers Business person in a rush Holiday goers at an airport University students City centre shoppers Value for money & fun area, toys Range of meal deals and promotions Drive through to eat on the go Range of foods, speedy delivery Promotional offers and new product ranges Comfortable and pleasant seating area 3.1.1. Marketing

3.1.1. Marketing Marketing You have been invited for an interview as a marketing apprentice at Top Print Ltd, a local printing company. The company specialises in providing high quality print solutions to meet business needs. This involves designing and printing business stationery, cards, marketing literature, catalogues and also promotional gifts. The business prides itself on customer service. On its website it states “our business is not just about selling to you it is about understanding your needs and exceeding our customers’ expectations.” Your interview is with Cheryl, the marketing manager. Are you ready for your interview?

3.1.1. Marketing Interview time Cheryl is keen to see if you understand anything about the business and marketing. Can you answer the following questions? For Top Print Ltd which P in the marketing mix is the printing of promotional goods such as mugs? Why might a local bakery shop be interested in the services of Top Print? You have a meeting with a potential new customer. How would you identify their needs? What are the benefits to Top Print Ltd of understanding customer needs? Cheryl says that she wrote the statement for the website as she strongly believes that marketing is not just about selling. To what extent do you agree with Cheryl’s view? Promotion Produce business cards, advertising materials etc Interview them Repeat purchase, increase sales and improved profitability It also includes researching the market to anticipate and satisfy customer needs

Would you like fries with that? Have a nice day! 3.1.1. Marketing Would you like fries with that? Have a nice day! Think about the last time you visited a fast food restaurant. How would you rate the customer service? Did it meet your expectations? If yes did you give feedback? If no did you give feedback? Were you encouraged to give feedback? Is marketing important to McDonalds? How important is customer service as part of the marketing at McDonalds? http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schools-and-students/mcd_customer_services.pdf Homework: Read the information sheet on Customer Service at McDonalds and answer the talking point questions.

3.1.3 Product trial and repeat purchase Do you recognise these trial flavours? Would these adverts have encouraged you to trial a new flavour? Is this good market research or just a gimmicky campaign? Have any of these flavours been launched? How else can a business encourage customers to trial a new product? https://www.youtube.com/watch?v=H1KWofXSt6c 3.1.3 Product trial and repeat purchase 3.1.3 Product trial and repeat purchase

3.1.3 Product trial and repeat purchase A product trial involves getting people to buy your good or service for the first time. The product is usually brand new to the market. A repeat purchase involves getting your customers to buy your product again. 3.1.3 Product trial and repeat purchase

Product trial There are a number of ways in which a business might promote a new product. These might include: Advertising - informing customers Free Publicity – journalists invited to a lunch party fro new product Penetration pricing – setting low initial prices to attract customers Free samples – targeting potential consumers at locations such as railway stations with free tasters User testing – cars taken fro test drive 3.1.3 Product trial and repeat purchase

Repeat purchase Brand loyalty means that customers will continue to buy their favourite product. Businesses will spend money advertising their products in order to inform and persuade customers with their buying habits. A product trial will involve an initial promotional campaign. Hopefully, people will try the new product. If it is good enough they will become repeat purchasers. Write down your five favourite brands – ones that you will not accept a substitute for. Prioritise them from 1 to 5. State two reasons why you must have that brand. 3.1.3 Product trial and repeat purchase

New Heinz Moshi Monster Pasta Shapes 3.1.3 Product trial and repeat purchase Heinz post details of all new products on their website. Within the marketing mix is this an example of: Product Place Price Promotion (1) Identify two marketing activities Heinz could take to get customers to trial Moshi Monster pasta shapes. (2) Explain how one of these actions would encourage customers to trial Moshi Monster pasta shapes. (3) Explain one marketing activity Heinz could use to encourage repeat purchases of Moshi Monster pasta shapes. (3) What is meant by the term pester power? Trivia: The number of families that buy Heinz Kids Pasta is the same as the population of London

3.1.5 Branding and differentiation

Branding A promotional method that involves the creation of an identity for the business that distinguishes the firm and its products from other firms Branding can add value to a product allowing firms to charge higher prices Leads to brand loyalty whereby customers will continue to buy products from that firm 3.1.5 Branding and differentiation

Branding to aid product trial and repeat purchase Established business such as Apple can use their brand name, image and reputation to help in product trials Consumers are likely to be repeat purchasers of branded product as they believe in the quality of the good or service 3.1.5 Branding and differentiation

Brand Brands can take a number of forms as shown below. Can you think of an example for each? BRAND Design Colour Symbol Shape Term Name 3.1.5 Branding and differentiation

What makes one product different from competitors? In order to make a product stand out from competitors a business may have a USP Why would a USP help a business be successful? Can you list 3 products with a USP? What is the relationship between a USP and the price a customer is willing to pay? _ _ _ _ _ _ / _ _ _ _ _ _ _ / _ _ _ _ _ Unique selling point

Unique selling points A Unique Selling Point (USP) is something that distinguishes a firms product from those of its competitors. Firms try to make their product different to the competition by adapting the actual product in some way or by distinguishing the product through advertising and branding. This is known as product differentiation. A USP can allow a firm to charge a premium price. A USP at Dragon’s Den! waterbuoy on dragons den 3.1.5 Branding and differentiation

Product differentiation A business might have a product range selling a variety of goods or services to meet consumer needs With high competition in most markets it is important that a business tries to differentiate itself from the competition in order to sell Draw a market map for fashion shops (or the car industry) e.g. Top Shop, Next, Zara etc. Plot price (low to high) against quality (low to high). 3.1.5 Branding and differentiation

Product differentiation A business might differentiate its products through: Quality Design Promotion Branding Packaging How have the fashion (or car) businesses that you have produced a mind map for differentiated their products? 3.1.5 Branding and differentiation

Question time SuperGroup is a UK fashion retailer offering quality clothing and accessories. They are the company that own the street wear brand Superdry. SuperGroup sell through physical stores and online. Which one of the following elements of the marketing mix does this represent? Product Place Price Promotion (1) Identify two methods SuperGroup might use to differentiate its products from its competitors. (2) Describe why developing a well known brand is important to the success of a business such as SuperGroup. (3) 3.1.5 Branding and differentiation

MARKET RESEARCH Can you identify 3 types of market research? EQUATES IN IRON VERY US CUPS FOUR GO If you were planning to open a clothes shop in your local area what information would you want to know before making important decisions? MARKET RESEARCH 3.1.2 Market Research

Market Research What is market research? Market research is the collection and analysis of data and information to inform a business about its market This could includes: Customers Competitors Market place Market research can be either qualitative or quantitative 3.1.2 Market Research

Methods of market research There are two categories of market research: Primary market research (field research) involves the collection of first hand data that did not exist before. Therefore it is original data. Secondary market research (desk research) is research that has already been undertaken by another organisation and therefore already exists. 3.1.2 Market Research

Methods of market research Primary Secondary Advantages Disadvantages already exists may be compiled by experts quick to access specific to your needs up to date can be cheap Lip balm market research lack of expertise time consuming results may be limited Can be expensive for large samples can be out of date often expensive not specific to you 3.1.2 Market Research

What is Qualitative and Quantitative Research? Qualitative research gathering of non- statistical information that gives peoples’ opinions, methods include: focus groups, taste panels, open ended questions and in depth interviews Quantitative research gathering of statistical data to inform the company about people’s behaviour but does not identify the reasons, methods include closed questions and Surveys 3.1.2 Market Research

3.1.1. Marketing

Primary research task 3.1.1. Marketing

Secondary research task 3.1.1. Marketing

Market research – Question time The flow chart opposite is taken from McDonalds who carry out on-going market research to help determine a suitable marketing mix. Identify one method of collecting quantitative data.(1) Explain how collecting quantitative data might help McDonalds improve its marketing mix. (3) Identify one method of collecting qualitative data. (1) Explain how collecting qualitative data might help McDonalds improve its marketing mix. (3) Extension Which type of data do you think would be the most useful to McDonalds in improving its marketing mix? Justify your answer. (6) Source: www.mcdonalds.co.uk

Subway’s survey With reference to the survey explain what is meant by qualitative and quantitative data. Is this an example of primary or secondary research? Why do you think Subway collect personal information from their customers? State and justify one other method Subway could use to help meet customers’ needs. Explain how Subway could use the results from this survey to improve their marketing mix. http://www.surveymonkey.com/s.aspx?sm=LCsORA6dnX4q01hgI2FcpQ_3d_3d 3.1.2 Market Research