1. Management of MARKETING
“ways to encourage buyers and sellers to make an exchange”

2. Purpose of the marketing department
Help achieve the organisation’s objectives
Raise awareness of products/services
Increase or maintain market share
Inform customers about products
Establish what customers want

3. Identifying Anticipating Satisfying consumer needs MARKETING is the …
Definition from Institute of Marketing
Identifying
What does the customer want
Does it meets their needs now and in the future
Anticipating
Is it the right product at the right price
Satisfying
consumer needs

4. How to group customers Task 1 – N5 recap N5 textbook Read p55
SEGMENTS
Gender
Age
Occupation
Income/
Social class
Geographical
Location
Lifestyle
Task 1 – N5 recap
N5 textbook
Read p55
Religious/
Cultural
beliefs
Task 2 - Describe each segment and give an example
Scholar to research segments before writing a definition

5. Target Marketing Target markets can be:
When a business develops and aims a product at a particular segment … the Target
Target markets can be:
Same product to different groups or different products to different groups
Differentiated
Eg bank accounts
Undifferentiated
Aimed at everyone
Eg milk

6. Niche Marketing
Aiming a product at a particular, often tiny, segment of a market. Eg: Classic FM, blogs, dance classes, Christmas Movies channel on Sky
Why use this niche marketing?
Sell products which have been overlooked/ignored by larger firms
Personal touch - focus on the consumer needs

7. NICHE Marketing - Problems
Lack of economies of scale
High risk if only one product is produced
Relies on customer loyalty

8. Approaches to marketing
MARKET-LED
Products based on what the customers want
Analyses needs of the consumer (MR)
Responds quickly to market changes
Strong position to meet competition
PRODUCT-LED
Focus on the product – organisation produce what they want
Aim to innovate
Little or no Market research
Market may have little or no competition

9. Task
Suggested solution: Product-led businesses concentrate on their product as they believe the product is good quality and will always sell. They do not undertake extensive market research. However, market-led businesses conduct extensive market research to amend and update their products based on what customers want.
Sample Exam Question: Distinguish between product-led and market-led organisations
MARKET-LED
Products based on what the customers want
Analyses needs of the consumer (MR)
Responds quickly to market changes
Strong position to meet competition
PRODUCT-LED
Focus on the product – organisation produce what they want
Aim to innovate
Little or no Market research
Market may have little or no competition

10. Consumer behaviour is about trying to answer the
“why”, “what”, “how” and “where”.

11. Consumer behaviour
Organisations study consumer behaviour in order to answer the following questions:
Peer pressure
Status symbol
Why do they buy what they do?
Is the purchase necessary
Spur of the moment decision
What motivates them to buy?
Advertising, point-of-sale display, store layout
Culture
What influences buying decisions
Pupils to write their ideas on the board first. Psychology?

12. What customer buys the products Online or in a shop
Market segments
What customer buys the products
Online or in a shop
Range of products, convenience
Where do they choose to buy and why?
What criteria are they trying to satisfy
What do they look for when buying?
Consumer behaviour is about trying to answer the “why”, “what”, “how” and “where”.

13. Consumer behaviour
Buying behaviour will depend on the type of products being bought:
Impulse purchase – bought without thinking, could be reacting to a promotion/offer
Routine purchase – buying out of habit without much thought – bread
Limited decision-making purchase – some thought required – is an item of clothing appropriate for a certain purpose
Extensive decision-making purchase – lot of thought put in before buying – car or house

14. MARKET RESEARCH
Aims to find out what customers want and what is happening in the marketplace.
Finds out:
Type of customer and their buying habits
Success of marketing/advertising campaigns
What could be done to improve products/services
What customers would like to see in the future

15. WHAT CAN THEY RESEARCH? CUSTOMER AND MARKET PRODUCT PROMOTION METHODS
PRICING TACTICS
DISTRIBUTION OPTIONS
COMPETITION

16. TYPES OF RESEARCH FIELD RESEARCH Primary data
Information is first hand and must be collected
Collected for a specific purpose
Can be internal or external
DESK RESEARCH
Secondary data
Information already exists
Information is being re-used
Can be internal or external

17. Field research Disadvantages Advantages Staff training required
Collecting the information is expensive
Time consuming
Advantages
Gather for specific purpose
Relevant
Information is up-to-date
Discussion and clarification can take place

18. FIELD RESEARCH METHODS
Surveys/questionnaires
Interviews
Observations
Hall tests
Focus groups
Quick discussion: can you describe each method

19. Survey/Questionnaire
Involves asking people their views and opinions through a series of questions
Can ask people for their general views on something or they might be asked to rate something specific
Pros – inexpensive, large number of people can take part
Cons – people may not complete the survey or be honest

20. Task - The following are survey methods:
Personal Interview – face-to-face interview
Telephone Survey – contacted by phone and asked questions
Postal Survey – sent through the post, completed and sent back
Online Survey – website is used
Street Survey – stopping people in the street and asking questions
List the advantages and disadvantages for each methods (mind map or table)

21. Survey/questionnaire design
Most field research is completed using a questionnaire therefore it must be designed appropriately. Reading: check your inbox, a document name “Designing a Questionnaire” has been sent to you. Read it! Task: Complete the task “Questionnaire Faults”

22. Hall tests
This involves consumers trying a product and giving their opinion on it.
Pros – First hand information about the product can be gathered, relatively inexpensive to carry out
Cons – people might not be honest, comments made may not be beneficial

23. OBSERVATION
This involves watching something and recording what happens.
It may involve counting the number of times something happens, or what someone’s reaction is to a particular situation.
Pros – numerical information is easier to analyse. People act naturally, not aware they are being observed
Cons – opinions cannot be asked for

24. Focus groups
Discussion is held between a selected number of people and a researcher.
People are asked their view on a particular topic or product – discussion can cover many different areas
Pros – gain an understanding what people feel and what they want
Cons – difficult to analyse

25. TASK – FOCUS GROUP Groups of 3 or 4 Choose a products Evaluate it
Report back to the class

26. Desk research This involves looking a existing/secondary information.
This information can come from within the organisation (internal) or outwith the organisation (external)

27. Examples of sources Internal Sales and stock figures Financial records
Customer feedback
Previously gather market research
External
Internet websites
Government statistics
Trade directories and journals, newspaper articles
Competitor information – websites, financial reports

28. Advantages and disadvantages
Complete the following table:
Note: information comes in different types as well (pictorial, written, quantitative etc). How does this affect analysis?
Advantages
Disadvantages
Primary
Secondary
Internal
External

29. PROBLEMS WITH MARKET RESEARCH
What do you think the problems with MR are?
Not 100%
dependable
Human
Behaviour
Sampling
and
bias
Products/services that have been researched
have a better chance of success

30. SAMPLING
During field research it is impossible to ask everyone their opinion, therefore people need to be selected to take part.
2 main types of sampling
Random sampling
Quota sampling

31. Random sampling
People are randomly selected from a list (telephone directory for example)
All of the people selected must be interviewed
Interviewer is not biased as they have not selected the people

32. Exam Question: Distinguish between quota and random sampling.
Quota sampling
People are selected based on a certain characteristic (age, gender, occupation)
Interviewer selects those who meet the criteria – can lead to bias
Less expensive than random sampling
Quota sampling involves selecting certain groups of the population that meet certain criteria or market segment, whereas random sampling involves choosing anyone from the population at random.
Exam Question: Distinguish between quota and random sampling.

33. Factors which determine the method of sampling used:
Type of product/service
The location of the business
What stage the product is at in terms of the product life cycle
What other market research already exists
Resources and budget available