Marketing
What is a market?
- When people talk about "a market" they mean all the people, companies, groups etc involved in buying and selling products.
What is marketing?
- Marketing is when people try to find out about how they can make a profit supplying goods and services
The Marketing Mix
Product - decide on what the product is
Packaging - decide on what you want the packaging of the product to be
Price - work out what the price should be. The price should be appropriate for the product, should be a competitive
price and should make sure the product is generating profit.
Promotion - the company will decide how to market, advertise and sell the product.
Place - Establish the chain of distribution. (See next chapter.)
Packaging - decide on what you want the packaging of the product to be
Price - work out what the price should be. The price should be appropriate for the product, should be a competitive
price and should make sure the product is generating profit.
Promotion - the company will decide how to market, advertise and sell the product.
Place - Establish the chain of distribution. (See next chapter.)
Product Development
Product development is meant when companies create a new product, or update and alter a new one. This promotes business, and will often gain consistent customers for the company. EG. anyone who purchases an iPhone 3 is more likely to purchase an iPhone 4, and then an iPhone 5.
What is a target market?
A target market is the specific group of people a product or service is aimed at. This is because they are the people most likely to buy the product e.g. Lelli-Kelly shoes are aimed at young children.
Market Segmentation
Market segmentation is the process of dividing the market into groups of people who share the same characteristics, e.g. teenagers, older men, middle-aged women. This makes it easier for companies to target consumers.
Market Research
Market research is when companies research how consumers will react to a new product; this involves surveying consumers and in particular the target market.
The Aims of Market Research
Market research aims to do the following:
- Discover what products/ services consumers require.
- Come up with a name for the product.
- Discover suitable ways to advertise the product.
- Find out how to get the product to the consumer - work out the chain of distribution.
- Settle on a suitable selling price. It must generate a profit for the company but still be affordable.
- Discover any competition in the market, eg. River Island and New Look would be competitors.
Field/ Primary Research
This is research carried out by the company themselves. This may be a survey/poll etc. where the company then goes through the information.
Types of field research:
Polls
Surveys - online & door-to-door
Testers/samples
Interviews etc.
Questionnaire
Types of field research:
Polls
Surveys - online & door-to-door
Testers/samples
Interviews etc.
Questionnaire
Desk /Secondary Research
This is research that is carried out on old information - from old surveys, newspapers, polls etc. A company may use their own research or use research published by another group.
Which is better?
Field research is often better as the information is more up to date, and may also be more accurate for the product the research is about e.g. carrying out a survey on a Peugeot 206 will give you more accurate information than a general survey on cars will.
Pros & Cons
Desk Research
Field Research
- Inexpensive
- Difficult to obtain relevant, accurate info
- Often tedious
Field Research
- Hugely Expensive
- Useful and relevant
- A lot of work involved
Advertising
Advertising is the process by which the manufacturer gets information about the product across to the consumer.
Informative advertising: Basic info about the product, often government advertisements - e.g. the bord bia ad about food safety.
Persuasive advertising - attempting to persuade someone to buy the product, through playing emotions. eg - you are a good mother if you use fairy liquid to wash dishes.
Competitive advertising - this is where companies criticize their competitors and highlight the good parts of their own product. e.g. - "Tesco is cheaper on 300 products than Dunnes Stores."
Collective advertising - when small companies group together to create a communal add - e.g. "Buy Irish milk."
Informative advertising: Basic info about the product, often government advertisements - e.g. the bord bia ad about food safety.
Persuasive advertising - attempting to persuade someone to buy the product, through playing emotions. eg - you are a good mother if you use fairy liquid to wash dishes.
Competitive advertising - this is where companies criticize their competitors and highlight the good parts of their own product. e.g. - "Tesco is cheaper on 300 products than Dunnes Stores."
Collective advertising - when small companies group together to create a communal add - e.g. "Buy Irish milk."
Where is advertising done?
Radio
Television
Celebrity endorsement
Free samples
Posters / billboards
Leaflets
Online
Shop Windows
Television
Celebrity endorsement
Free samples
Posters / billboards
Leaflets
Online
Shop Windows
Selling Techniques
These are techniques used by companies to sell products. They include:
- Special offers - 2 for 1
- Free samples - testers
- Tokens/customer rewards
- Lowering prices to be more competitive
- Sponsorship
- Placing luxuries at eye level
Branding
Branding is the act of building up a brand around a product e.g. - Coca Cola only supply soft drinks, yet they have the famous Christmas advertisements and trucks. Normally a company will have a logo and a slogan e.g. "Enjoy the taste of Coca Cola."
Take the online Marketing Quiz
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(Use the settings on the top right of the quiz page to keep testing yourself)
(Use the settings on the top right of the quiz page to keep testing yourself)