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BUSINESS DECISION AREAS

BUSINESS DECISION AREAS. The Marketing Concept The Marketing Mix Market Research. Marketing. Marketing. 1. The Marketing Concept 2. The Marketing Mix 3. Market Research. B108/078 – BDA – Marketing. 1. The Marketing Concept.

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BUSINESS DECISION AREAS

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  1. BUSINESS DECISION AREAS

    The Marketing Concept The Marketing Mix Market Research Marketing
  2. Marketing 1. The Marketing Concept 2. The Marketing Mix 3. Market Research B108/078 – BDA – Marketing
  3. 1. The Marketing Concept Marketing is involved in finding out what consumers need and want in order to produce the right product at the right time. Marketing is viewed as essential in order to reduce the risk of business failure, particularly in a competitive environment. B108/078 – BDA – Marketing Concept
  4. 1. The Marketing Concept - continued Marketing involves: identifying consumer needs and wants anticipating future consumer needs and wants satisfying consumer needs and wants to inform or remind consumers about the product to increase or maintain market share B108/078 – BDA – Marketing Concept
  5. 1. The Marketing Concept - continued The Marketing function is specifically involved with: Product design, research and development; Pricing – high or low price strategy; Place – how the product/service gets to the customer; Promotions including advertising, to inform and persuade; Market research ie to find out what markets want now and in the future; Public relations and publicity. B108/078 – BDA – Marketing Concept
  6. 1. The Marketing Concept - continued Market share This refers to the % of the total potential market that the business attracts. A high market share can create brand loyalty and allow a business to have greater flexibility in marketing strategy. A high market share can help to secure the survival and market growth of the business. B108/078 – BDA – Marketing Concept
  7. 1. The Marketing Concept - continued Market led and product led organisations Market led organisations establish a market and tailor their product and service to suit the needs and wants of that market. Typical features include; highly competitive markets lots of similar products on the market a high risk of failure B108/078 – BDA – Marketing Concept
  8. 1. The Marketing Concept - continued Product led organisations provide a product and/or a service in the hope that a market exists. Typical features include; low competition a unique product with few alternatives strong advertising in support of the product’s USP (Unique Selling Point) B108/078 – BDA – Marketing Concept
  9. 2. The Marketing Mix The Marketing Mix and the 4Ps Product – Price – Place – Promotion. A business has to ‘mix’ these 4Ps in order to provide a USP (Unique Selling Point) for its product/products The ‘mix’ will change over time in order to make sure that the product/service continues to be successful. B108/078 – BDA – The Marketing Mix
  10. 2. The Marketing Mix - continued PRODUCT/SERVICE The product or service itself. It can be the actual product – design/colour as well as offering guarantees and after sales service. B108/078 – BDA – The Marketing Mix
  11. 2. The Marketing Mix - continued The product life-cycle This shows the different phases that a product will pass through over time. Some products will take years to pass through the stages and some may take only weeks. 5 4 6 3 sales 2 1 B108/078 – BDA – The Marketing Mix time
  12. Extended life 5 4 6 3 sales 2 1 time 2. The Marketing Mix - continued When a product reaches saturation, the business may adopt one of the following strategies in order to extend the life of the product. Improve the product/ packaging. Change the price. Alter the channel of distribution. Change the promotion and advertising. B108/078 – BDA – The Marketing Mix
  13. 2. The Marketing Mix - continued PRICE The amount that a consumer is prepared to pay for a good or a service. The price can be high/low or market. Pricing strategies B108/078 – BDA – The Marketing Mix
  14. 2. The Marketing Mix - continued B108/078 – BDA – The Marketing Mix
  15. 2. The Marketing Mix - continued B108/078 – BDA – The Marketing Mix
  16. 2. The Marketing Mix - continued PLACE The place where the product or service will be available for the customer to buy – eg retail outlet or direct through the Internet. The channel of distribution will depend upon: the product being sold. the size of the market. the finance available. the desired image for the product. any legal restrictions. the reliability of the ‘chain’. MANUFACTURER WHOLESALER RETAILER CONSUMER B108/078 – BDA – The Marketing Mix
  17. 2. The Marketing Mix - continued PROMOTION The ways that a business can use to help attract custom and sell their products and services (this includes advertising). Promotion Reminds consumers of a products existence Persuades consumers to buy Informs consumers about a product B108/078 – BDA – The Marketing Mix
  18. 2. The Marketing Mix - continued Into the pipeline Promotions Out of the pipeline Promotions Manufacturers to retailers Retailers to consumers point of sale displays dealer loaders sale or return dealer competitions dealer bonuses credit facilities free samples credit facilities demonstrations competitions BOGOFs bonus packs free offers coupons/vouchers B108/078 – BDA – The Marketing Mix
  19. 3. Market Research Businesses carry out Market Research so that they can: Identify consumer demands find out how they view existing products. find out what their wants are for future products. This will make sure that the business is satisfying their market currently. This will make sure that the business will satisfy their market in the future. Market research can also help the business to discover new markets for their products. B108/078 – BDA – Marketing Research
  20. 3. Market Research - continued Why is market research important? It can help to indicate the size of the market available. It can help to forecast future market growth. It can help to provide information to provide the best marketing mix (4Ps). It can help to keep ahead of competition. It can help the firm to become ‘Market Led’ and therefore improve chances of success. It can help to identify suitable target markets. B108/078 – BDA – Marketing Research
  21. 3. Market Research - continued Market research can be: Primary research (field research) First hand research obtained for a specific purpose by the business. Examples include: test marketing consumer panels interviews surveys observation B108/078 – BDA – Marketing Research
  22. 3. Market Research - continued Market research can be: Secondary research (desk research) Second hand information which has been researched by someone else and then used by the business. Examples include: sales records on-line databases newspaper articles and periodicals government reports and statistics B108/078 – BDA – Marketing Research
  23. 3. Market Research - continued Advantages and Disadvantages of Primary and Secondary research. B108/078 – BDA – Marketing Research
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