1. Marketing

2. What are you learning? Understand the purpose of Marketing
Understand how businesses segment the market

3. Marketing is…
Identifying profitable products and selling them to the customers
Persuading customers to buy
Informing customers

4. MARKET SEGMENTATION – who are we aiming at?
XBOX Kinect
Fitflop trainers
The Sun Newspaper
Moshlings
Milk
think, pair, share

5. The Market Segments
Age – people of different ages will appreciate different things
Gender – male and female customers buy different products
Income – people who have high disposable income can buy luxury products

6. Race/religion/ethnic group
Area – people who live in Scotland have different needs to those who live in the South of England
Hobbies/interest
Race/religion/ethnic group
Complete Task 1 and 2

7. How do we find out what people want to buy?
MARKET RESEARCH

8. What can a company research?
Promotion
Competition
Pricing
Product
Distribution
The market

9. What are you learning?
Understand the different types of market research used
Why businesses use these types

10. Types Of Market Research
DESK RESEARCH – Internal and External
FIELD RESEARCH

11. DESK RESEARCH - INTERNAL
Looking at information that already exists within the company
Sales records
Financial information

12. Desk Research - External
Looking at information that already exists outwith the company
Government statistics
Media reports
Newspapers
Journals
Internet Websites
Complete Task 3

13. FIELD RESEARCH
If after desk research there are still gaps in information
Use FIELD RESEARCH to fill these gaps
This information does not exist already – it must be gathered

14. Forms of Field Research
Gathering information directly from your target market – using:
Questionnaires
Interviews – personal and telephone
Postal surveys/on-line survey
Observations
Technology - EPOS
Focus groups
Consumer panels
Complete Task 4

15. Field and desk research – costs and benefits
THINK, PAIR AND SHARE
Display what you have learnt on a mind map

16. Field Research
Desk Research
Advantages
Research is up-to-date
Information is gathered for a specific purpose
Research has already been carried out and is usually easy to access eg newspaper, website
Information is cheaper to gather than field research which saves the organisation money
Disadvantages
Can be expensive to carry out
It can be time consuming to carry out
Information may not be as reliable as field research because it was carried out for a different purpose
Information may be out-of-date, incomplete or biased

17. Product X What’s it all about? Teamwork Product Testing
Market Research
Logo Design
Packaging
Advertising
Competition

18. Product X – Stage 1 Pre Tasting Taste Test
Think about what you would want in a ‘perfect’ chocolate bar.
How would you assess/grade how perfect the bar is?
Design a grading sheet for your tasting session
Taste Test
In groups of 3 taste the product
(Warning – if you have an allergy alert your teacher)
Record your results on your grading sheet
Find out about the ingredients
Identify the market segment of your product

19. The Questionnaire
How do we construct a QUESTIONNAIRE? Follow the rules on the checklist It is important that these rules are followed This will mean your product has more chance of success

20. Questionnaire Checklist
Write a clear introduction - what you are looking for and why?
Assure confidentiality – you will keep their answers private
Keep questions clear, short, easy to understand and relevant
Avoid using jargon
Don’t ask questions that rely on memory

21. Questionnaire Checklist
Don’t ask leading questions – “You like this product don’t you?”
Start with easy questions
Avoid too many terms such as regularly, often, sometimes
Use groupings eg for age 16-30
Test the questionnaire before you use it on the general public
Complete Task 5

22. Product X – Stage 2
CREATE A QUESTIONNAIRE FOR PRODUCT X Remember the checklist!
You will need to find out
The size of the market
What is your main market
What about competition
Where it should be sold
What price should be charged for it

23. 2 main approaches to marketing:
Product
orientated/led
Market
orientated/led
Customer led
Company led

24. Business focuses on the product New technology developed this way
PRODUCT ORIENTATION
Little market research carried out – company make the products based on what they want
More common in the past
Business focuses on the product
New technology developed this way
MARKET ORIENTATION
Led by the market – tries to analyse the needs of the consumer
Responds quickly to changes in the market
Strong position to meet the challenge of new competition
Any business with a large product range
Complete Task 6

25. Quick Test Describe the purpose of market research.
Name the two types of market research.
Suggest 3 methods of carrying out market research.

26. Quick Test
1 Describe the purpose of market research. To find out what customers want 2 Name the two types of market research. Field and Desk research 3 Suggest 3 methods of carrying out market research. Questionnaire/Survey; Interview; Consumer Panel