BTEC Business Unit 2: Marketing - Learning Aim A

Learning Aim A focuses on understanding the aims and objectives of marketing and how they align with business goals. It covers the importance of identifying the target market, analyzing competitors, and using market research to make informed decisions. This section explores key concepts such as market segmentation, the marketing mix (product, price, place, and promotion), and the role of branding in creating a competitive advantage.

Marketing

Marketing

promoting a business and what it offers/process of teaching consumers why they should choose product/service of competitors/linked to sales with the intention that a successful marketing campaign will pay dividends

Anticipating demand

looking at latest trends to anticipate demand on sales.

Recognising demand

keeping up to date with competitors and recognising demand for products/services and trends in consumer behaviour

Stimulating demand

finding different ways to promote the brand e.g online advertising,happy hour ,BOGOFs, offering vouchers for product lines from poor sellers.

Satisfying demand

ensuring stocks/ capacity can deliver a service that is sufficiently available to meet any demand generated making sure there is enough stock to cover items for the holidays.

BOGOF

Stands for Buy One Get One Free

Happy hour

selling products at reduced prices e,g to encourage customers to stay and eat when buying a cheaper drink.

marketing aims and objectives

these consist of: understanding customer wants and needs,developing new products,improving profitability by reducing costs, increase market share,diversification, increasing brand awareness and loyalty

market leadership

the position of a business with the largest market share in a given market for goods and services

scattergun approach

identifying purpose of products/services to establish a target market

product segmentation

determined by: age,gender and ethnicity and findings are presented in a piechart

brand personality

This can have a major impact of what the customer buys especially if it has a brand personality e.g sophistication and professional look of certain brands including: L'Oreal

brand image

This can stick in a customer's mind helping to link to products with a particular supplier/manufacturer e.g "beanz,meanz,heinz" - most successful advert campaigns ever. strong brand can portray an image which can bring success.

Once a brand becomes more successful, it can help the business to enter new markets or sell into existing markets with less risk of failure. if customer is satisfied will purchase again

Different methods to market services/products

these methods consist of: social media,word of mouth,email,billboard signs,pens,posters etc.

The future of marketing,mobile marketing and the impact of social media

social media has had a positive impact --> more ways of making advertising cheaper, done digitally, aiming to target a specific market (considering how valid/reliable to data is)

Primary research

information/data taken from the original source/ asking directly e.g surveys

Secondary research

information/data taken from a third party/ not directly asking source e.g reviews

Quantitative data

(opposite of qualitative data) data that can be measured and counted e.g how many boys are in a class

Qualitative data

(opposite of quantitative data) data that cannot be measured/based on different opinions e.g what is the food like in the canteen

Consumer behaviour

product decisions answered routinely everyday with the help of businesses marketing their product/service

the 7ps marketing mix

consisting of product,price,place,promotion,people,process and physical evidence

promotional mix

personal selling, sales promotion,publicity, direct marketing and advertising

branding

the identification of a logo/product/service which is instantly recognisable without any explanation needed

factors of branding

these are: awareness,consideration,preference,purchase,loyalty and advocacy

effective marketing strategies

these require careful planning and structure into overall identifying the purpose followed by the objectives to identify how the aims will be achieved.

objectives

the stated measurable targets of how to achieve business aims

SMART

Specific, Measurable, Attainable, Realistic, Timely

Marketing objectives focusing on selling the product and the 4 ps

Creating a product that has a USP (Unique Selling Point)

Targeting a particular consumer demographic (population,age,gender,income etc.)

Social media and public relations activities to support the company brand image

USP

Stands for Unique Selling Point. this helps the brand to gain market share over competitors in order to stand out.

budgetary constraints

marketing plans should have a budget to ensure that the business doesn't overspend/justify its expenditure due to the impact of the sales.

internal influences on marketing activity

cost of campaign, availability of finance, staff expertise and size and culture of the business

External influences on marketing activity

political and regulatory environment, economic environment, competitive environment, social and cultural environment and technological environment

Mass market

appeals to a large part of the market, These cover different age groups and locations from their original form. The choice of which product of choice will be made depending on other factors e.g style/price

Features of mass market

lower costs and higher profits, high sales and competition

Advantages of mass market

• high potential in sales

• market leader in mass market can be very profitable

• less risky

Disadvantages of mass market

• more competition

• needs to be able to operate on a large scale

• product harder to personalise

Niche market

a small segment of a much larger market. sales will be lower but profit margins will be higher. These markets are restricted to specialist interests or needs

Advantages of niche market

• less competition

• products can be personalised

disadvantages of niche market

• fewer potential customers

• profits lower

• higher cost (specialists)

Market segments:

part of a market that contains a group of buyers with similar buying habits.

• a business segments its market depending on how the business is sold to the customers

factors to segment a market

age,gender,income,area,

ethnicity,religion and socio economic group

Generic product

opposite of a branded product, customers not seeing any real difference between the product on offer e.g Salisbury brand jaffa cakes/ mcvities jaffa cakes. (branding helping to increase price)

purpose of advertising

to inform people of a product, persuade people to make a purchase

benefits and drawbacks of tv advertising

TV (very expensive for a minimum time, can target large audience)

expertise/availability of staff

Internal staff might not have sufficient expertise to deliver the marketing strategy, whether this is the negotiating advertising costs, producing professional artwork/writing straplines to attract attention

The business may have to seek external specialist support,easier to get the professional. considering age and experience

market share

the percentage of a given market that a business holds

strapline

a caption/heading often roviding a brief and snappy overview of a product/service/news story

culture

behaviours,habits and values of groups/individuals

Disposable income

the amount of residual money available for non essentials after paying bills and creditors e.g credit cards/store cards

viral (advertising/marketing)

unsolicited and infectious marketing tactics using social media to attract interest

PESTLE and SWOT analysis

• PESTLE: most significant factors under each heading and briefly explain

• SWOT: analyse information for research: strengths and weaknesses are internal and refer to case study and opportunities and threats are external so refer to market information

Justification

Conclude overall ideas for marketing plan and research; summary of situational analysis and marketing mix, discuss key strengths and opportunities influencing marketing activity and success and discuss key weaknesses and threats influencing marketing activity and how they will overcome them (linking to research)

Target market

Outline target market (a specific segment) and how the business will segment it

Marketing mix

Product- key features,qualities and USP

Price- strategy,competitor strategy

Place- suitable for customer access,realistic and practical

Promotion - appropriate for target market and business marketing budget

Timescale

Determine when each promotional method should be used the seasonality of the product and explain when it will be most effective and when it should be used

Cinema advertising is

good for visualisation but very expensive

radio advertising

cheap but there is no aspect of visualisation

Billboard advertising

cheap cost of advertising, doesn't target a specific audience

Social media

Is cheap but can be ignored

Company website

not expensive but relies rely on audience intuition

Window display

Cheap but easily ignored