business unit 2 activity 1

Anticipate demand

Working out what customers want in the future

2. Use market research to ask questions about products n services

3. Business predicts needs

Recognise demand

Market research (identify needs)

2. “Gap in the market” and recognise the opportunities

Stimulate demand

Using advertising (eg social media) to persuade customers to buy

Satisfy demand

Market research for improvements on products

2.Marketing so ppl know where to buy from

Role of marketing

1. Raise awareness

2. Increase sales

Marketing message

What the business is trying to sell to customers

Luxury/ premium marketing message

Message: high quality, expensive, exclusive

Campaign shows:

1. High pricing

2. Promotion: minimalist, elegant adverts

3. Visuals: dark colours, gold, black, chic, clear design

4.Place: selective ( boutiques, high end website) (not everywhere)

Fun/ exciting

Message: energetic, playful

Promotion: bright colours, bold fonts, engaging content (social media best)

Tone: informal, humorous language

Product: unique or creative features/ flavours

Place: events, social spaces, high footfall areas (many people go)

Offers: competition, giveaways, interactive elements

Family friendly

Message: safe, suitable for all ages, good value

Promotion: clear, simple messaging

Visuals: warm, welcoming imagery (family, groups)

Price: affordable n value deals

Product: variety that appeals to different age groups

Place: accessible locations (shopping areas)

Healthy/ lifestyle

Message: better for u, supports wellbeing

Promotion: focus on benefits (energy, health)

Product: low calorie, organic, neutral, fitness related

Visuals: clean, fresh imagery (greens, whites)

Language: “balanced, nutritious”

Place: gyms, health stores, online fitness platforms

Convenience or speed

Message: quick, easy, accessible

Promotion: online ordering, delivery, multiple locations

Place: online ordering, multiple locations

Technology: apps, simple checkout

Language: fast, easy, “on the go”

Process: streamlined (minimal hassle )

Sustainability/ ethical

Message: environmentally friendly, responsible, considerate

Product: eco friendly materials, ethical resourcing

Promotion: highlight sustainability clearly

Packaging: biodegradable, recycling, minimal

Language: eco, sustainable, ethical, moral

Place:often online, specialist retail

Product life cycle ( 5 stages) n what it helps with the business

Introduction- product is launched, sales low, business spends a lot on marketing

Growth- sales begin to increase rapidly, profits start to grow

Maturity- sales peak then plateau, market becomes saturated, competition is high, may use promotions to maintain interest

Decline- sales n profit begin to fall, product may be outdated or replaced by newer alternatives

Helps the business make decisions about pricing, promotion, and when to update products

Mass market def

A mass market targets a large group of ppl with similar interests

Products r designed to appeal to the general public rather than a specific segment

Key features of mass market (5p)

Wide appeal- products not personalised, suit most ppl

High sales volume- businesses sell large quantities often at lower prices

Standardised products- one version for all customers, minimal variation

Heavily advertised- marketing is broad, use TV, radio, social media, newspapers

Strong competition- many businesses may offer similar products

Examples of mass market products:

Soft drinks: Coca Cola, Pepsi

Tech: iPhones, Samsung

Fast food: McDonald’s

Niche market def:

Niche market is small, specialised segments, focuses on meeting the specific needs for a certain group of ppl

Key features of niche market: (4p)

Targeted products: designed to meet the specific requirements of small group

Lower sales volume: fewer customers, often higher prices

Specialised marketing: promotion carefully tailored to the specific target audience

Less competition: fewer businesses serve these markets, customer loyalty can be high

Niche market examples:

Vegan skincare

Luxury watches

Lactose intolerant ppl

study content apps

Target market:

a specific, well defined group of consumers, that the business aims it marketing efforts and products towards

The 4 ways to define a target market: (4p)

1.demographic segmentation (who they are)

2.geographical segmentation (where they are)

3.psychographic segmentation (how they think)

4.behavioural segmentation (how they act)

1st way to define a target market (segmentation)

1.demographic segmentation (who they are)

• age, gender, income level, occupation

  
  

2nd way to define a target market (segmentation)

2.Geographic segmentation (where they are)

• location, climate, scope (local, national, international)

3rd way to define a target market (segmentation)

3.psychographic segmentation ( how they think)

• social class (attitude), lifestyle, interests n hobbies

4th way to define target market (segmentation)

Behavioural segmentation (how they act)

• usage rate (heavy or occupational buyers), brand knowledge, benefit sought( what problem they’re tryna solve

Validity for research:

How accurate the research is

Reliability research:

How consistent and dependable the research results are