Marketing
Customer
Satisfaction
It involves:
·
Having
the right product
·
At
the right price
·
In
the right place
·
Using
the right promotion
See a clip defining Marketing
Define Marketing
·
Marketing
is about customer satisfaction
It involves
identifying target markets needs and wants
·
Marketing involves Market research
A business
must carry out desk and field research to find out exactly what customers want
·
Marketing involves getting the right
marketing mix
The right product
In the right place
At the right price
Using the right promotion
Market Segmentation
Markets can
be divided up into groups.
Business should identify which segment they want
to target
Read 21st Century Business Book p301
Define Market Segmentation
· Splits a market
o
Demographic
o
Geographic
· Identifies a specific target market
· Increase Sales
o
If
target a neglected segment
· Lower costs
o
Avoids spending marketing budget to consumers outside the target market
Be able to expand on each point
2009
Q 7 b
Identify the target market for the following product:
Gender:
Target Market
The total
number of potential customers they can sell to.
Business may
target by:
· Gender ( males or females)
· Age (children, teenagers etc)
· Location (City, Country)
· Time of year (Christmas, Easter,
summer etc)
· Hobbies (football, dance etc)
Identify the target market for the following product:
Gender:
Age:
Gender:
Age:
Age:
Watch the following clip to see what happens if you do not listen to your Target Market
http://www.youtube.com/watch?v=BQhy0esY7ks
Niche Market
Small subset in a target market
Willing to pay high prices for goods
Marketing Strategy / Plan
· Marketing
plan is a predetermined course of action
A marketing
plan is prepared for a marketing event in the future
· Sets out
steps for a business to achieve their marketing goals
A marketing
plan provides the business with a focus and guides them to achieve their marketing
aims
· There are
different elements to a marketing plan
Market
research
Marketing
mix
Marketing
budget
Benefits / advantages of a marketing
plan / strategy
·
Streamline
Operations
Marketing Planning
is important to set the Business working together to achieve common goals and
objectives. With a good marketing plan
everyone will be clear on how to satisfy customer needs.
·
To gain financial
assistance.
In applying
for an EU / Government grant, a bank loan or private investment a Business must
provide a marketing plan to prove they are focused on the customer and have
researched all necessary areas.
Financial institute will also want evidence that they will get a return
on their investment.
·
Encourages staff
to accept change
A good clear
marketing plan will help employees accept changes in the business marketing. Business should include staff in this
planning process. If staff is involved
they will have a clearer understanding of the plan and will be more willing to
accept it.
·
Failing to plan
is planning to fail.
A Marketing
plan gives a business clear aims and objectives. It can highlight present internal marketing Strengths
and Weakness and external future marketing threats and opportunities.
·
Achieve goals
Marketing Plan
can help a business achieve short term specific goals. It will give relevant stakeholders a guide on
schedules of time and required marketing actions.
Market Research involves:
· Researching the market
o
Desk
and Field research can both be used by business to find out about the target
market in order to ensure customer satisfaction and make a profit
· Gathering the information
o
Business
can use desk research and collect data already available or carry out the
research relevant to their product using field research.
· Recording the information
o
Database
(Microsoft Access) can be used to store and manipulate data collected
· Analysing the information
o
Evaluate
the feedback gathered.
Why is Market Research important?
· To find out what product the
consumer wants
· To find out what price the
consumer will pay
· To find out what place to sell
the product in
· To find out what promotions
the consumer is interested in
2009 Q7 A
Answer
· Market research is important to
ensure the right product for the consumer
Find out in
advance what products consumers like and don’t like. Product ideas that get favourable reactions
can be developed further.
EG
Internal reports can help business research products that sell
well.
Similarly
package and design are important to consumers.
EG
Consumer panels can test alternatives on consumers and get feedback that
will help the product sell well.
· Market research is important to help
set the right price
Price is
important to maximise revenue. Too low
can mean loss and too high may discourage consumers.
EG
Business can
use the WWW to see
what competitors charge for similar products.
· Market research is important to
decide what place to sell the product
The product
must be in a place accessible to the consumer.
EG
A business
could use Government
publications such as the census to see where the majority of their
target market is located and where they shop in order to sell goods in the
right place.
· Market research is important to
create the right promotions
It can assist
in selecting the right advertising, sales promotions, PR and personal selling
the customer expects.
EG
A business
might use observation
to see what sales promotions attract consumers to buy particular goods
Marketing Mix
Learn about the 4 P's of the Marketing Mix Lady Gaga style
Every product has its own mix. The business must have:
1. The right product
2. In the right place
3. At the right price
4. Using the right promotion
1. Product
·
Brand
name
·
USP
/ design
·
Lifecycle
·
Package
Product should have a brand name.
Brand name helps us to identify the product.
Think of brand names you would associate
with each of the following:
|
Product Type
|
|
Vacuum Cleaner
|
|
Correction Fluid
|
|
Pen
|
| Breakfast Cereals |
2010 Q7 (c)
Answer
Brand names
When a
business gives a product a name / symbol, this makes it easily identifiable and
stands out.
· Price charged
Business: Well known brands can charge high
price
Customer: They associate quality with brand
and will pay high price
MAC charge €18 for lipstick.
Customer know this lipstick is high quality and will pay.
Now you finish the
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