1. 11BST
1.4 Marketing

2. 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

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

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

5. 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

8. 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.

9. 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

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

11. 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”.

12. 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.

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

16. 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.

17. 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