Marketing (AQA)

Identifying and understanding customers

1. Identifying customer needs 2

2.  Anticipating customer needs 2

3. Meeting customers’ needs 2

Segmentation

1. Purpose of market research 2

2. Methods of market research 2

Elements of marketing mix

1. Price 3

1.1 Pricing methods 3

1.2 The factors influencing pricing decisions 4

2. Product 4

2.1 Benefits and risks of developing new products 4

2.2 Product differentiation 4

2.3 Product Life Cycle 5

2.4 Extension Strategies 6

2.5 Boston box 6

3. Promotion 7

3.1 Promotional method 7

3.2 Factors influencing selection of promotional methods 7

4. Place 7

4.1 Channels of distribution used by businesses 7

4.2 E – Commerce 7

4.3 M – Commerce 7

Identifying and understanding customers

1. Identifying customer needs
       -     Conduct focus groups
       -     Use social listening (Identify which social platforms your customers are most 

                             active on, their pain points, what do they enjoy etc.)

    2.  Anticipating customer needs

• Focus on buyer’s journey

• Identify customers’ future needs

3. Meeting customers’ needs 

• Identify what your customers need from you through keyword research, focus groups, or social listening.

• Distribute the information to relevant stakeholders in your organization.

• Craft product features or create content that speaks to your customer’s needs.

• Collect customer feedback on how your efforts meet their expectations.

Segmentation

1. Purpose of market research – 

Market research, considering demand, competition, and the target market, aims to gauge customer needs, assess rival offerings, and identify the ideal audience for tailored product/service development and effective marketing strategies.

2. Methods of market research 

1. Questionnaire - They are structured sets of questions designed to gather information and opinions from respondents. They help in market research by providing a systematic way to collect data from a target audience. The data collected can be analyzed to derive insights, understand customer needs, assess market trends, and make informed business decisions.

2. Surveys - They are tools used in market research to gather information, opinions, or feedback from a targeted group of people. They involve a series of questions that respondents answer either verbally, in writing, or through online platforms. They help in understanding customer preferences, market trends, satisfaction levels essential for making business decisions.

3. Interviews - Direct one-on-one conversations to gather detailed qualitative data on opinions, attitudes, and insights, aiding in understanding individual perspectives in market research.

4. Focus Groups - Small group discussions guided by a moderator, helping to generate collective insights and understand group dynamics, useful for testing concepts and exploring perceptions.

5. Internet Research - Gathering data from online sources such as surveys, social media, and analytics, offering real-time, cost-effective information to track trends, sentiments, and consumer behavior.

6. Printed Press - Information sourced from physical publications like newspapers and magazines, providing historical data, in-depth analysis, and a tangible record of public opinion and trends.

Elements of marketing mix

1. Price

            1.1 Pricing methods

1. Price skimming : Setting a high initial price and gradually lowering it to capture early adopters willing to pay a premium for new products.

2. Price penetration : Introducing a product at a low price to quickly gain market share and rapidly attract customers to establish a foothold in the market.

3. Competitive Pricing : Setting prices based on competitors' pricing strategies for maintaining competitiveness while ensuring profitability.

4. Loss Leader : Selling a product below market cost to attract customers, aiming for additional sales and Draw in customers who might make other profitable purchases.

5. Cost-Plus Pricing : Adding a markup to the production cost to set the selling price. It ensures profitability by covering costs and achieving a desired profit margin.

            1.2 The factors influencing pricing decisions

1. Costs : Pricing decisions are significantly influenced by production, marketing, and overhead costs incurred to bring a product or service to the market.

2. Nature of the Market : Market demand, customer preferences, buying behavior, and overall market conditions impact pricing strategies.

3. Degree of Competition : Pricing decisions are shaped by the actions and pricing strategies of competitors within the industry.

4. Product Life Cycle : Pricing strategies are adjusted according to the different stages of a product's life cycle, including introduction, growth, maturity, and decline.

• You need to have an understanding of the basic relationship between price and demand i.e. as prices rise demand is likely to fall.

2. Product

1. Benefits and risks of developing new products

2. Product differentiation

• Unique Selling Price 

• A USP identifies and communicates a unique feature, benefit, or characteristic that makes a product stand out from similar offerings in the market

• It helps consumers understand the specific value or advantage they can expect by choosing that particular product over others available

• A strong USP gives a competitive edge by emphasizing what makes a product superior or more appealing compared to alternatives in the market

• It contributes to shaping the brand's identity and positioning in the market, allowing consumers to associate distinct qualities with that product or service

• When a USP addresses a unique need or provides an exclusive benefit, it can foster stronger connections with customers who value those specific attributes

• Brand image

• By branding its products, a business guarantees the consumer that the next product brought will be the same as last one

• This encourages repeat purchases through brand loyalty

• This helps business differentiate its products from those of customers

• This also allows businesses to charge a higher price

• It results in brad equity in which brand itself becomes valuable

3.  Product Life Cycle

4.  Extension Strategies

1. Updating Packaging : Refreshing product packaging design to attract attention and modernize the product's appearance. Revitalize consumer interest and enhance the product's shelf appeal.

2. Adding More or Different Features : Introducing new functionalities or variations to the existing product to provide additional value. Extend the product's usefulness and appeal to evolving consumer needs.

3. Changing Target Market : Shifting the focus of marketing efforts toward a different consumer segment. Expand the customer base and tap into new market opportunities.

4. Advertising : Promoting the product through marketing campaigns across various channels. Reinforce brand presence, communicate product benefits, and attract attention to drive sales.

5. Price Reduction : Decreasing the product's price to make it more appealing to consumers. Stimulate demand, increase competitiveness, and maintain or grow market share.

5.  Boston box

3. Promotion

1.  Promotional method

1. Advertising (newspapers, magazines, television, internet, billboards)

2. Public relation (leveraging various communication channels to build and maintain a positive public image for a brand.)

3. Sales promotion (samples, coupons, competitions, free gifts)

4. Sponsorship

5. Social media 

2. Factors influencing selection of promotional methods

1. Finance available

2. Competitor actions

3. The nature of the product or service

4. The nature of the market

5. Target market

4. Place

1.  Channels of distribution used by businesses

2.  E – Commerce

• Selling items online and delivering them to the customers.

• This helps the businesses to grow rapidly without incurring much cost of delivering.

3.  M – Commerce

• Refers to the buying and selling of goods and services using mobile  devices like smartphones and tablets. 

• Helps in expanding customer reach, improving customer engagement etc.