Business Unit 3.1

Marketing- The management process that is responsible for anticipating, identifying and satisfying customer needs profitably
1. Designing the research deciding how to conduct and gather the research
  1. This involves choosing whether to use primary (first hand) or secondary (already gathered) research and how to get primary research eg. surveys
    1. There are two types of data qualitative (Data about opinions, judgements and attitude) and Quantitative data Data that can be expressed as number and can be statistically analyse
2. Undertaking the research which is carrying out the research
  1. Surveys involve asking questions to respondents. There are different types of surveys that can be conducted in different ways eg. a postal survey or a telephone survey
    1. You can't ask everybody questions therefore a sample of people must be chosen. A sample is a small groupof the population. Samples can be chosen randomly, systematically or as a quota.
3. Analysing the information- interpreting what it means
  1. This leads to Decisions being made based on the information. Market research could reveal problems and answer questions about a product and its sales.
Product trial- when consumers try a good for the first time and assess whether or not they want to buy it again
1. Repeat purchases- when a customer buys a product more than once caused by customer loyalty. This can be gained by ensuring your marketing mix is suitable for your target market.
  1. Advertising leads to trials because it creates awareness, this can be done using the media
  2. Free publicity can be gained via journalists, businesses use this as it does not cost money.
  3. Free samples allow people to try a product, if they like it they are more likely to buy it.
  4. User testing is for products that cannot be sampled so are tested eg. cars
  5. Targeting trade buyers is used so that the wholesales who buy the products must sell the product to consumers or they will lose money.
  6. Low trial prices or penetration prices are used so customers trail the product while it is cheap and continue to buy it as the price increases
Product life cycle- the stages through which a product passes from its development to being withdrawn from the market.
1. Development- research and creating a product influenced by market research .Negative cash flow.
2. Growth- sales and profits increase. Small cash flow
3. Maturity- the product is peaked in terms of sales many buyers ae loyal customers and most sales are repeat purchases. Positive cash flow
  1. Businesses use extension stratergies to extend this sage by changing part of the product to appeal to a new segment of the market
4. Saturation and decline- sales start falling as the competition takes sales, this eventually leads to decline. Positive cash flow.
Boston matrix- a model which analyses a product portfolio according to the growth of the product andits relative market.
1. Star. Market share high: market growth: high. They are very successful products usually in the growth period
2. Problem children or ?.Market share:low market growth: high. businesses do not know what to do with these products as they have potential to be stars or could be better withdrawn from the market
3. Cash cows.Market share:high market growth: low. They are normally popular products but their sales are unlikely to grow, normally in the maturity stage. Customers are loyal and little investment is necessary therefore the profit can be used else where.
4. Dogs. Market share:low market growth: low.They are unsuccessful and prospects are poor
Brand-A named product which consumers see as being different from other products and which they can associate and identify with.
1. Generic Product-A product made by a number of different businesses in which customers see very little or no difference between the product of one business compared to the product of another business eg.milk
  1. Own Brand-A product which is sold under the brand name of a supermarket chain or other retailer rather than under the name of the business which manufactures the product
    1. Businesses want strong brands as customers associate with it and are more likely to trial there products.They can also charge premium prices own brands are normally cheaper
Product differentiation- Making one product different from another in some way, for instance through the quality of a product, its design, packaging or advertisin
1. You can change a product by changing the:: Design, Formula, Function, Name , Packaging and differentiating across the value chain
Marketing Mix A combination of factors which help a business to take into account customer needs when selling a product as the 4P’s (price, product, promotion and place)
1. Product this includes the formula, packaging, name and varieties
2. Price- higher prices give an impression of high quality. Also profit is higher.
3. Place- place is about the product being available to customer
4. Promotion-promotion is important as it is how the customer becomes aware of a product.

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Business Unit 3.1

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