Revision Business Angela

Revision notes for Business

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  • Created on: 25-03-08 16:29
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Revision Business Angela
Marketing is the management process responsible for identifying, anticipating and satisfying
customer requirements.
Approaches to Marketing
Product Led approach ­ The product is made and then sold
Market Led approach ­ Research about what the market want is done and then
the product is made according to their findings
Asset Led approach ­ A firm looks at opportunities / customers requirements and
then matches it to their strengths.
Added Value
The finished product must have an added value, to make consumers pay more / buy their
product over others. This can be achieved through having a unique selling point on the
product or by marketing and building a `perceived' benefit i.e. branding.
Market Research
The point of market research is to gather information that would help when marketing a
product. I.e. about sales, competitors, market size, and new developments.
Market Research can help when:
Considering the launch of a new product
How customers will respond to changes i.e. the brand name.
Looking at customers reactions to different product prices.
Researching customers views on an advert before launching it, to make sure the
`right' adverts are used.
To asses how a product is doing
To see if it is worth competing in a particular market.
Essentially market research is used in 3 main areas:
1. To identify market opportunities
2. To assess the relative worth of different plans.
3. To review the success of the plans once implemented.
If effective it can help to provide a firm with a competitive advantage by enabling them to
make better decisions.
Types of Research:
Primary Research ­ Gathering information for the first time, done by
the firm itself.
Advantages and Disadvantages of Primary Research
+ Up to date
+ Specific to the firms needs
Expensive to collect
Takes time to collect

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Secondary Research ­ Using data that has already been collected for
another purpose.
Advantages and Disadvantages of Secondary Research
+ Cheaper than Primary
+ Quicker to gather than Primary
May be out of date
May be in an inappropriate format
Very general and available to other firms
Quantitative and Qualitative
Quantitative Research expressed in numerical terms.
Qualitative Research is based on the opinions there is lots of information.…read more

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Socioeconomic groupings
Usage rates
Purchase occasions
More modern methods of segmentation focus on the motives people have when they buy a
Is Segmentation Worth it?
If a firm can identify different groups within a market, it can offer products that precisely
match their requirements. They can adjust what they do according to the different needs of
each segment, which should lead to more sales and profit.
Marketing Objectives, Strategies and Tactic's.…read more

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Mass Marketing A firm aims a product or service at most of the market. To operate in a
mass market a firm must be able to produce goods on a large scale.
Advantages and Disadvantages of operating in a mass market:
+ The firm can produce large numbers of relatively standardised products.
This means the production process is relatively repetitive and the cost per unit
should be low.
If demand falls the firm could be left with unused resources.…read more

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Encourage the use of the product on more occasions
Reduce the price
Adapt the product
Introduce promotional offers
Change the image of the product
Product Launch and Capacity Utilisation
Capacity of a firm refers to the maximum amount it can produce at a moment in
Capacity utilisation refers to the amount that a firm is producing compared to the
amount it could produce.…read more

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The product is likely to have a good distribution system and people are aware that the
product exists. This type of product is likely to bring in high levels of cash for the firm as it's
producing relatively large amounts of sales so costs per unit should be low.
Question Marks / Problem Children ­ These are products possessing a small market share of
a fast growing market. These products may go on to be very successful but equally may fail. They
require extensive marketing.…read more


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