Business Section 2 - Marketing 1

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  • Created by: ryyansb
  • Created on: 24-03-15 19:27

The Marketing Mix

1. Product - come up with a product that people want to buy which will fulfil some of the customers needs and wants

2. Price - the customer should think it is good value for money

3. Promotion - promote the product so potential customers know it exists

4. Place - sold in a place customers find convenient    

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Market Mapping

Businesses map the market to find information

(http://www.tutor2u.net/business/gcse/market-map1.gif)

  • 1. How many customers are in the market and how much they spend
  • 2. Which segments customers belong to
  • 3. Which products are popular
  • 4. Where competitors sell their products
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Market Research

Market research finds out what customers want

  • Businesses would be in trouble if they spent time and money producing a product that no-one wanted
  • Useful to find out what customers want and what price

Field research:

  • Also known as primary or original research. Involves taking questionnaires, telephone surveys and focus groups
  • Useful for finding out new information
  • Large samples are the most accurate but are most expensive
  • Field research provides data that's up to date, relevant and specific

Desk research

  • Also called secondary or published research
  • Access to wide range of data - useful for looking at whole market
  • Involves looking at government publications and articles in papers and online
  • Often used by small businesses as it's cheaper
  • Disadvantage is that it's not always relevant
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Products + Price - demand and supply

Products

  • Market driven - find out what people want and then make it
  • Product driven - design a new product and then try to sell it

Price - demand and supply

  • As the price increases so does the quality
  • Equilibrium is where supply and demand meet

(http://cf.owen.org/wp-content/uploads/supply-and-demand.gif)

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Promotion and place

Promotion

Firms promote products by advertising - products can be advertised in different media:

  • 1. Local radio and newspaper- cheaper, small businesses, target specific regions effectively
  • 3. Magazines - target specialised markets
  • 4. Posters/billboards - high visual impact
  • 5. Leaflets/mail - target specific group

Where firms advertise depends on:

  • 1. Target audience
  • 2. Size and location of their market
  • 3. Size of the budget

Place

  • 1. Sold in the right place which is convenient
  • 2. Internet makes it easier for small businesses to sell products 
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