11BST 1.4 Marketing

What is Marketing? Marketing is not just advertising, promotion and selling. It covers many other business activities including: Product development Finding out which customers will buy the product Packaging What price to charge Where the product should be sold And the advertising and promotion to be used

Function of Marketing To find current consumer requirements To predict future consumer requirements To help make profits for the business To satisfy consumer needs

Structure of a Marketing Department Marketing Director Sales Regional Sales Manager Research & Development Promotion Advertising Distribution

Objectives of Marketing This is what the business is trying to achieve: To increase sales revenue & profitability To increase or maintain market share To maintain or to improve the image of products or the business To target a new market or market segment To develop new products or to improve existing products

SWOT Analysis This is a technique to help the marketing department to assess a product. It is a way of assessing the strengths, weaknesses, opportunities and threats (SWOT) of a product. See example on next slide.

Example SWOT analysis for a chocolate bar Strengths Weaknesses Good brand image Sales in the home market are rising Necessary updates to production equipment would mean production costs would rise Opportunities Threats Could sell in new markets overseas Could merge with a competitor to increase market share Foreign chocolate producers are very competitive

Activity Carry out a SWOT analysis for a product of your choice

Market Segmentation Defn: Is where the market has been divided into groups of consumers who have similar needs Example: chocolates are eaten by young children, teenagers and adults of both sexes. The marketing department divide the whole market into different groups and categories – these are called “market segments”.

Mass Markets vs Niche Markets Mass markets is where there is a very large number of sales of a product. Eg: cereal Many people in the population will buy this. Niche market is a small, usually specialised, segment of a much larger market. Eg: organic cereal. These products are normally sold be small firms as they often have too few sales for a large firm to bother with.

Ways of segmenting a market Age Region Use of product Gender Lifestyle Income/ social group

Marketing Mix Marketing mix is the combination of elements that you will use to market your product. There are four elements: Product, Place, Price and Promotion. They are called the four Ps of the marketing mix.

The 4 P’s Place Promotion Price Product Where will it be sold? How is it distributed Promotion How will potential customers know about it? Price High/ low Competitors Product Who will buy it? Design/ packaging