2. Learning Objectives
What is Marketing?
What is the marketing mix?
What is branding?
What is public relations (PR)
What is advertising?
What is the role of ethics in advertising?
3. Definition:
Marketing is the process of identifying
Human needs and producing products
And services to satisfy them
4. Marketing Strategy
A plan setting out how a
business will identify and
satisfy customer needs
5. Marketing Strategy
Gap in market/ Product
Target Market Marketing Mix
Market Segments positioning
6. Marketing Strategy
Analysing the market
1. Market Segmentation
o Market Segment/ Niche: Group of people
in which the product satisfies a similar
need.
o Different needs require different
marketing approaches
o Demographic segmentation – age/
income/ sex/ social class
o Psychological segmentation – attitudes
/tastes
8. 2. Target Market
o Target Market – Group of customers at
which to aim a specific product
o Characteristics – Age
Gender
Income level
Lifestyle needs
9. 3. Research – Product Positioning
o Product Positioning- Creating an image
of the product in the customers mind.
10. Homework Pg 307 Answers
Q.1
Name: Cost Effective
Explain: Having an effective marketing concept in
place saves a business money in the long term
because instead of spending huge amounts of
money on what they can make they identify
consumer needs first and then develop the product
Example: ipad
Name: Time Management
Explain: Instead of spending time developing
products businesses use their time more
effectively by researching consumer needs and
then develop the products
Example: Pepsi Max
11. Q.2
Niche Market: A niche market is a small
market segment in which a specific product or
service meets a small group of consumer
needs.
Example: Bridal shoes
Q.3
Product positioning: This is when a business
creates an image of the product in the
consumer’s mind.
Example: Pepsi Max – Male segment ‘macho’
image
12.
13. Product
Core Product – Main Function
Augmented Product-
Extras to help sell it. e.g.
packaging/ guarantee
USP - Feature distinguishing
it from competitors
14. Product Design and quality
Function: Product must do what is supposed
to do to satisfy target market core needs.
Form: Product must satisfy augmented needs
In terms of extras. E.g. Image/ Style
16. 1. Introduction: Product is launched.
Sales are slow.
Focus on distribution – widespread availability
Advertising is key
2. Growth: Advertising leads to increase in sales
Focus on production & quality control to meet demand
3. Maturity: Rate of increase in sales slows
Find ways to update product/ provide sales
promotion techniques
R&D of new products commences
17. 4. Saturation: Sales have levelled off.
Target markets are already buying the product
Can only increase sales by taking competitor’s
customers
New sales promotion techniques/ advertising/ R&D
needed
5. Decline: Supply of product is greater then the demand of it
Attempts to minimise costs by reducing spending on
advertsing to earn as much profit as possible.
* Coke Life cycle
18. Packaging
Protection – from damage during distribution
Presentation- Attractive to purchase
Information- Contains info about the product
Identity- Easily recognisable by consumers
19. Brand
Definition: is a product name which has
been registered with the controller of
Patents, Designs and Trade Marks and is
protected against copying by competitors.
20. Patent:
o Is legal protection for a product
or process.
o Must register product with
patent office.
o The patent holder has
exclusive rights to their product
for 10 years
21. Trade mark:
o A sign representing a product/
service and can be recognised
every where.
o Name/ Slogan/ Logo/ Colour/
Sound
22. Advantages of Brands
1. Identity: Makes the product more recognisable
2. Differentiation: Shows the differences that exists
Compared to competitors products
3. Loyalty: Brand satisfaction develops trust in
Consumers and they become loyal to that brand
4. New products: An established brand makes
It easier for the business to introduce new products
Into the market
24. Benefits of own brands
• The Retailer: Buys products more cheaply as
manufacturer is not advertising
• Consumers: Purchase cheaper products where
the quality is expected to be at a minimum
standard
• Producers: Get the products out to supermarket
shelves without any marketing costs.
25. Price
Characteristics:
•Profit: Price must be set high enough to cover
costs but make a profit
•Sales/ Demand: Lower the price = Higher the
sales = higher profits
•Image: High price – good quality ; Low price –
lower quality
26. Pricing strategies
1. Mark-up pricing: adding a
% (mark-up) to the cost of
the product and sell it at that
price
2.Premium pricing: High
price reflecting high quality,
Give impression of superior
quality
3. Price Skimming: High price
to cover high costs of
developing new product.
27. 4. Penetration pricing: Low price to
enter highly competitive market to
gain market share
5. Predatory pricing: Very low price
to drive competitors out of the
market. Can lead to ‘price war’
6. Price discrimination: Charging
different prices to different market
segments for the same product.
28. Demand
Profit
Stage in
Vat Factors influencing
product life
Price
cycle
Product
Competitors
Positioning
price
29. Place
• Getting products to consumers!
• Channels of distribution: route involved in getting
product from producer to consumer.
30. A
Step 1: Wholesalers buy in bulk from
the producer
Step 2: They store goods in
warehouses and sell them on to
retailers
Step 3: Retailers sell the goods in
smaller quantities to consumers
31. Advantages to producer Disadvantages to producer
1. Producers sell off stock in large 1
quantities & pass off responsibility
of ‘breaking bulk’
32. B
Step 1: Large retailers purchase
directly from manufacturers
Step 2: Retailers sell goods at cheaper
price to consumers
Own brand products are also produced
for these retailers and online retailers
33. Advantages to producer Disadvantages to producer
1. Distribution simplified 1. Large retailers expect large
because wholesaler is discounts for selling the
bypassed producers stock reducing their
profit margin
2. Using large retailers means
producers can reach a mass
market
34. C
Step 1: Agents receive goods and sell
them on behalf of the producers
Step 2: The agent earns commission
on goods sold
35. Advantages to producer Disadvantages to producer
1. Wholesaler and retailer are 1. Difficult to reach mass
bypassed so profit margin market
increased
36. D
Producers sell directly to their customers
Advantages to producer Disadvantages to producer
1. Bypass other intermediaries 1. High focus on attracting
allowing for increased profit customers instead of main
margins focus on product itself
2.Develop good customer
relationship
37. Target market
Ease of transport
Factors influencing
Distribution
Payment Product Image
methods
38. Promotion
The way a business influences the target market
to purchase their products
` How?
39. Advertising
Advertising is the science of creating and placing
media that Interrupts the consumer and then gets
him or her to take some Action.
40. Functions of Advertising
Informative:
Providing information about the
function of the product/service.
Persuasive:
Convincing consumers of the
desirability and the benefits that set a
particular product apart from the
competition.
41. Generic:
Promote the sale of a product but not a
particular brand
Competitive:
Comparing brands with each other
showing why their product/service is better
E.G. Supervalu v Lidl & Aldi
Reminder:
General adverts showing brands
51. E-commerce:
•Selling goods or services over the
internet is called e-commerce or e-
business.
•The ‘e’ stands for ‘electronic’
•B2C is used to identify sales from
a business directly to consumers.
• B2B indicates sales from one
business to another.
54. Social media:
•Also known as social networking and refers to a
range of internet technologies that enable people
to communicate and socialise online.
• Users can combine text, video and audio to
create online messages, podcasts and status
updates.
•E.G.S Facebook, Twitter and their increasing
popularity in providing businesses with an
opportunity to reach members of their target
market.
57. Answers
Question 3
1. Identity: Makes the product more recognisable
2. Differentiation: Shows the differences that exists compared to
competitors products
3. Loyalty: Brand satisfaction develops trust in consumers and they
become loyal to that brand
4. New products: An established brand makes It easier for the
business to introduce new products Into the market
Question 6
1. Target market: This will influence whether the price will be set high
or low taking into consideration their characteristics e.g age, income
levels
2. Cost of production: A price must be set to cover the costs of
producing the goods
3. Demand: The higher the demand for the product the higher the
selling price
4. Product positioning: The image that the business are trying to
portray to the public will effect pricing strategy. E.g. premium pricing.
58. Question 7:
In the channel of distribution there can be two intermediaries
between the producer and the consumer. These are the
wholesaler and the retailer.
Benefits of intermediaries:
• The wholesaler/ Retailer buys in bulk from the producer so they
become the ones responsible for ‘breaking bulk’.
• They incur the costs of transport and advertising to the consumer
•Allows distribution of products to a mass market. Increasing
sales, increasing profits
Benefits of selling directly to consumer:
• Earns extra profit for the producer because they can charge
higher price to the consumer as wholesaler and retailer are not
taking a cut
•Consumers can custom order goods to their specifications
•Develop positive relationship with the consumers increasing
customer loyalty
59. How to execute an advertising campaign
Step 1: Analyse
•Collect & analyse market research
of market segments and target
market
Step 2: Plan
•Identify aims of advert
•Decide budget of adverting
•Decide on media mix to be used
•Evaluate cost effectiveness
60. Step 3: Implement
• Design adverts
• Produce adverts
• Book advert slots
• Decide on timing to showcase adverts to maximise
impact
Step 4: Review
• Effects on sales levels
• Effects on consumer attitudes – market research
• Make improvements
61. Laws in Advertising
ASAI- Advertising Standards Authority
in Ireland
Ads must be:
Legal Decent
Honest Truthful
62. Office of Director of Consumer Affairs
Withdraws false / misleading ads
Prosecutes sellers who use false/
misleading ads
63. Sales Promotion
• Offers consumers an incentive to
buy product/ service
• Used at Introduction, maturity
saturation and decline phases
• Aim: Switch brands – build loyalty
65. Direct Marketing
• Identifies list of potential customer
• Sends them promotional material &
special offers by email/ letters
• ‘Junk mail’
66. Aim: To create and maintain a
good image of the firm & its
products
PRO: Public relations officer
67. How?
Press Relations: News items about the
company
Press conference: Meetings arranged by
the company, reporters can ask questions
Sponsorships: Arrangement where the
company pays money so that their
company name/ logo can be associated
with that event/ team
69. Question
Evaluate the elements of the marketing mix, using a product or
service of your choice. (30 Marks)
Solution:
Choose product
Step 1: Define Marketing Mix & benefit of planning it.
Step 2: Product
- Core/ augmented/ USP
- Design
- Brand – benefits of brand name
- Product life cycle –Maturity stage
Step 3: Price
- What will price effect
- Price strategy – why choose this
Step 4: Place
- Define Chanel of Distribution
- Choose channel; Id benefits of it
Step 5: Promotion
- Define
- Benefits of PR
- Choose medium – Link to target market
