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Business Studies Topic: The Role of Marketing

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The Role of MarketingAs we move through the lesson today we will

have the opportunity to:Explain and DiscussWork in GroupsQuestion and Utilise our ICT skills

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The Role of marketingIntroduction

The key role of marketing is to identify consumer demand and communicate to customers how the products or services of a business can satisfy this demand YouTube - Great Advertising

Marketing is the management process which involves identifying consumer wants and needs, establishing how the business can satisfy those wants

and needs, closing a sale, building the customer relationship,

http://www.youtube.com/watch?v=bilOOPuAvTY&feature=related Philip Kotler (Principles of Marketing Guru)

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The Role of marketingKey Concepts

Identifying the nature and characteristics of products and services desired by the customer What is the most important feature of a product to its

consumer?Anticipating the changing expectations of consumers in

order to be ahead of the market What do consumer expect from our product?

Satisfying their customers which involves offering customer value Does the customer believe that their time, money spent worth

the effort when buying this product?Ensuring profitability, no money no business http://www.youtube.com/watch?v=_l506XT1fxY

(Evolution of Music Devices)http://www.youtube.com/watch?v=X-8tS0d_TOQ&NR=1

(Apple Evolution Ad)

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The Role of marketingWhat is a market?

Three main characteristics

Products or services

Buyers

Location

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The Role of marketingThe Target Market

Identifying a target market is crucial in determining the function of a business

A target market is segmented in terms of: Demographic Factors Geographical Factors Psychographic Factors Behavioural Factor

http://www.youtube.com/watch?v=ugIDVARaTNU&feature=related (Market Segmentation)

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The Role of marketingThe Target Market

Demographic Factors Who is our customer in terms of:

Age Sex Education Income

http://www.youtube.com/watch?v=Jjs_oteF6Ms&NR=1

(Nielsen presentation on demographic segmentation) (Huggies Baby Advert)

http://www.youtube.com/watch?v=ZpclbYghRj8

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The Role of marketingThe Target Market

Geographical Factors Is where contact occurs between the buyer and

seller Country Region/city Neighbourhood http://

www.youtube.com/watch?v=zY2E_NvRow0&feature=related (Coppertone Commercial)

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The Role of marketingThe Target Market

Psychographic Factors This is about understanding why a customer buys It is concerned about lifestyle characteristics

Personality, Values, Attitudes, Interests, or Lifestyles http://

www.youtube.com/watch?v=owGykVbfgUE&feature=channel (Old Spice Advert)

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The Role of marketingThe Target Market

Behavioural Factors Concerned with the motivation behind the buying

decision Value for money Quality of the product Rate of purchase http://

www.youtube.com/watch?v=PrdX3PEcBLc&feature=related (Revlon commercial)

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The Role of marketingThe Marketing Mix

The Marketing Mix forms the foundations upon which a marketing plan is developed

The foundations of the marketing mix are the 4 P’s Product Price Promotion Place

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The Role of marketingThe Marketing Mix (4 P’s)

Product It is the core of the marketing mix It is the good or service Tangible (shape, design, appearance) Intangible (after-sales service, image conveyed by

using the product of service) Key features of products/services are:

Branding/Trademarks Positioning Packaging Warranties After-sales service

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The Role of marketingThe Marketing Mix (4 P’s)

Price Must make the product/service accessible to the

market It should cover all business expenses Price can be affected by but not limited to:

Demand Competition

Pricing strategies Market penetration strategy Market skimming

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The Role of marketingThe Marketing Mix (4 P’s)

Promotion Obtaining a certain position for the product/service in the

market by making the consumer aware of the products features and how it compares to the competition

It attempts to convince consumers to purchase and repurchase

It helps develop customer loyalty Promotion includes:

Introducing a new product/service to the market Build a products image or remind consumers of the product Encourage consumers to switch from a competitor Create a need in the market that did not exist before

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The Role of marketingThe Marketing Mix (4 P’s)

Promotion Tools may include: Advertising (TV, radio, internet, newspapers, mags,

billboards) Sponsorship, coupons, loyalty cards Personal selling Public relations

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The Role of marketingThe Marketing Mix (4 P’s)

Place Is the placement of a product, its transportation,

storage, and distribution to consumers Placement is also achieved through channels

Direct from the producer to consumer Producer to retailer to consumer Producer to wholesaler to retailer to consumer