2. What is a market?
• A market is where buyers and sellers come
together to exchange products for money; this
will not usually be a single location.

3. concepts
This is based on
economies of scale; companies try to reduce
costs as far as possible, as they assume people
will choose products based on price.
based on aggressive selling and
promotion.
Based on the idea that
organisations can best meet their objects by
concentrating on consumer needs and satisfying
those needs better than competitors

4. Business Objectives vs. Marketing
objects!
• Organisations in private and public sector have
business aims and objects.
• Business objectives: (private sector) are
objectives that concern the business or
organisation as a whole.
• Marketing objects: describe ways in which
focusing on consumer can help achieve the more
general objectives.
• The objects of Marketing = To increase sales,
profits and market shares and develop new
products and new market segments.

5. What does the marketing department
do?
• Sales
• Research and Development
• Promotion
• Distribution

6. SWOT Analysis
trengths
eaknesses
pportunities
hreats
• Looks at external factors: The opportunities and threats presented
by external factors
• Looks at the internal factors: The strengths and weaknesses internal
to the organisation.
• Why companies use swot: To see how well or badly they are doing
• What their competitors are doing
• How they may be affected by external factors
• What action they need to take based on information they’ve
collected.

7. Market Segmentation
• Market segmentation is the process of defining and sub-
dividing a large homogenous market into identifiable
segments having similar wants, needs etc.
• Ways of segmenting a market:
• Geographic: Urban, rural, region.
• Demographic: Age, sex, income, religion.
• Geodemographic: Mix of geo+demographic
• Lifestyle/psychographic: lifestyle, social class, personality
• Behavioural: buying habits, products usage, brand loyalty.
• Income group: grouping peoples job according to how
much they get paid.

8. • Niche market: This is when your product will
only appeal to a small sector of the population
• Mass market: this is when your product will
appeal to a large sector of the population e.g.
apple products.

9. Market research
Primary research
• Research that is being
carried out for the first time
e.g.. Surveys,
questionnaires,
observation, consumer
panels.
Secondary research
• Research already been
conducted by someone else
e.g. census.

10. Types of Primary research
• Consumer panels: when a selected group of
people who use the products, completes market
research. These people are often paid for their
time, makes quality research very good/reliable.
• Focus group: When a group of people discuss
their opinions of a product or service by
experienced researchers, on new products or
advertising campaigns.
• Observations: Watch behaviour of customers.
• Field trials/ piloting: When companies test new
products before launching it, very expensive.

11. Primary Research
Advantages
• Up to date
• Relevant – collected for
specific purposes
• Confidential
Disadvantages
• Costly
• Time consuming
• Doubts over accuracy and
validity

12. Secondary information
• Census: detailed information about people –
income, housing, ethnicity, education.
• Internal data: companies hold info about their
customers, they analyse this information on
an on going basis.
• EPOS: use of barcodes to record no. of sales
and level of sales.

13. Secondary information
Advantages
• Often attainable very
cheaply
• Identifies the nature of the
market
• Quick to obtain
Disadvantages
• Ay not be updated often
• May not be suitable or
presented in an ineffective
manner
• May not be available for
new product.

14. Marketing Mix
• The marketing mix is all the key activities that are
involved in marketing (selling) of a business
products/service referred to as the four Ps.
• Product
• Price
• Place
• Promotion.
• Objectives of the marketing mix = to support
brand building and to satisfy the needs and
aspirations of targeting group of customers.

15. PRODUCT MIX
• Many firms make and sell a variety of
products. The range of products sold is known
as the product mix.
• The term product includes: quality,
appearance, brand, warrantee, after-sales
service, product range and functionality
including features.

16. Product Life
D
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17. PLACE MIX
• This refers to how the product gets to the
consumer.
• Why is place important in marketing?
1. Producer > Consumer
2. Producer > Retailer > Consumer
3. Producer > Wholesaler > Retailer > Consumer
4. Producer > Agent > Wholesaler > Retailer >
Consumer.

18. PRICE MIX
Penetration Pricing Launch your product at a low price, gain
market share then raise price.
Differential Pricing Different people are charged different
amounts for the same thing e.g. Train
tickets.
Skimming Charge a very high price when the
product is first launched so “rich early
adopters” buy the project e.g. IPhone.
Psychological Pricing When companies charge for example
$9.99 so they can say “less than $10.00”
Cost Plus Estimating how much will be produced,
adding up costs of producing add a
percentage and mark up for profit.
Competitive Pricing Setting your price in line with or just
below your competitors
Destroyer Pricer Way below competitors price to get other
stores customers.

19. • Elastic Demand: If a quantity demanded is
very responsive to price changes, then a small
change in price will lead to relatively large
change in quantity demanded. Price increase
demand decreases.
• Inelastic Demand: Where quantity demand is
unresponsive to price change.
• Demand: defined as the quantity of a good or
service that consumers are willing and able to
buy at a given price in a given time period.

20. Demand and factors influencing
demand
• Affordability
• Competition and availability of substitutes
• Level of income
• Needs and aspirations of consumers
• Fashion and taste changes
• Advertising and promotion spending

21. Factors influencing supply
• Supply is defined as the quantity of a product
that the producer is willing and able to supply
onto the market at a given price in a given time
period
• Availability of raw materials
• Taxes imposed by government
• Government support (subsidies)
• Weather conditions and other natural factors
• Advances in technology

22. Equilibrium: Position at which demand equals
supply, so that produces and consumers are
happy/

23. Promotion
• Creating an awareness of your product/service to
your target market.
• Steps of promotion Aida
1. Capture attention: make target market
interested
2. Create interest: help your audience identify your
business
3. Generate desire: why people need your product
or service
4. Call to action : where to get product.