Nat 4/5 Business Management Marketing Nat 4/5 Business Management

Introduction to Marketing Marketing is crucial to business success Marketing involves finding out the needs and wants of customers – why do you think this is important to organisations?

What is a Market? Goods and services are sold to customers in markets – this just means the place where consumers and sellers meet. Markets exist in many places: Online In a shop Over the phone Through apps

The Role of Marketing Marketing is responsible for finding out who buys the product, when they buy it and from where, how often they buy it and what they are likely to spend on it. (Market Research) Finding out the best way to sell a product Promoting products Identifying opportunities in new/old markets

Role of MArketing Marketing can help create market growth i.e. increases the number of customers buying from the business This can increase the proportion of customers it has in its own market compared to competitors (market share) If the company have the most customers compared then they become market leaders

Market Segmentation Customers are very important to businesses as they are the ones who buy the products! In order to ensure the products will sell businesses will usually target specific groups of customers with their items – this is known as their target market

Task In groups, decide what the target audience is for one of the following chocolate products? Explain your reasons.

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Lesson Starter Answer the following questions: What is meant by Market Growth? What does the term Market Leader mean? What is Market Segmentation? Identify four customer segments that a business may target.

Some brands have different chocolate bars to cater for different audiences Mars was a product targeted at men: The chunky bar appeals to male taste, The red and black packaging attracts male buyers.

Mars Delight was launched to appeal to women: A more subtle, feminine wrapper, A more slender, delicate bar, A chocolate product that was less heavy and filling.

Market Segmentation Why target specific groups? To make sure the product is suitable and meets the needs of specific customers To make sure that the product is sold in the most appropriate place Prices can be set to suit specific target markets Ensures advertising and promotions are suitable toward the customer group

Task Individually, create a poster using ICT explaining Market Segmentation. Your poster should: Explain what segmentation is Why businesses use Market Segmentation At least three examples of products that are targeted at specific customer groups – and how you know this!

Homework Questions Write the following questions in your homework jotters: What is a market? Why is marketing important to an organisation? What does being a “market leader” mean? What does market segmentation mean?