Business

TOPIC 3: MARKETING

‘Marketing is the process of planning and executing the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that satisfy individual and organisational objectives.’

Marketing is a total system of interacting activities designed to plan, price, promote and distribute products
to present and potential customers.

- Maximise sales
- Increase brand awareness
- Improve customer satisfaction.

1. Role of Marketing
→ everything the business does to maximise profits (not just advertising)
→ defined as the total system of interacting activities that work towards effectively designing, pricing,
promoting and placing products to satisfy the needs of consumers to ultimately achieve product
maximisation.
1.1 Strategic role of marketing goods and services
The strategic role of marketing is to maximise profits through:
1. Providing customers with choice and variety
E.g Starbucks: different sizes, milk options, topping options
→ allows business to appeal to a wider market thus increasing sales
2. Enhancing the quality of life of consumers/ target market
E.g starbucks: drinks provide satisfaction, and convenience, improves well-being by satisfying
hunger/thirst
E.g Apple: can talk to people easily no matter how far, constant access to someone to talk to
which increases Q.O.L
3. Creating employment opportunities
Highly skilled workers = more productivity = increased profit
4. Increasing brand awareness

1.2 Interdependence with other key business functions

● Marketing relies on Operations: to produce a high-quality and effective product to market
● Operation relies on Marketing: to market research and identify target markets, trends, need and wants to
inform operations on what to create, to satisfy consumer needs
● Marketing relies on Finance: to develop budgets for marketing and provide them with the necessary
funding
● Finance relies on Marketing: to sell and market products to achieve sales and profit which increases
internal sources (retained profits) of finance
● Marketing relies on HR: to find highly skilled and creative employees
● HR relies on Marketing: to ensure profits are maximised so that employees are motivated and retained

1.3 Production, selling, and marketing approaches

 1. Production (1820s - 1920s)
● Focus: producing/manufacturing
● Standardised
● Mass markets
● Quantity over quality
● Produced for the intended purpose
● Henry Ford: focused on mass-producing cars

2. Selling Approach (1920s - 1960s)

● Focus: emphasis on selling to beat the competition
● Why? → introduction of new tech = innovative practices = increased competition
● Businesses started to advertise and differentiate

3. Marketing Approach (1960s - present)

● Focus: consumer-oriented → introduction of customised and personalised products
● How can they change products to meet customer needs?
● E.g providing oat milk, gluten-free, diary free
● Advertising via various mechanisms → social medias
● Trying to gain a competitive advantage by tapping into customer needs and wants
● Influx of market research

1.4 Types of Markets

1.4.1 Resource
Consists of those individuals or groups that are engaged in all forms of primary production.
● Primary industry
● Raw materials
Mining, agriculture, forestry and fishing.

1.4.2 Industrial
Includes industries and businesses that purchase products to use in the production of other products or in their
daily operations.
Bakery = purchasing flour, milk, wheat etc to turn into bread

1.4.3 Intermediate
Is made up of wholesalers and retailers who purchase finished products and resell them to make a profit.
● Connects wholesaler to consumer
K-Mart, JB-HI-FI, Harvey Norman

1.4.4 Consumer
Are made up of individuals (members of the household who plan to use or consume the products that they buy).
● Directly to consumer
● Specifically suits their certain need
Consumer purchasing a subway sandwich.

1.4.5 Mass
The seller mass produces, mass distributes and mass promotes a product.
 ● Standardised
● Can be used in economies of scale
Electricity, water and gas.

1.4.6 Niche
Are also known as a concentrated or micro market, is created when the mass market is finely divided into
smaller markets consisting of buyers who have specific needs or lifestyles.
Diet and decaffeinated coca cola
Luxury Goods e.g. Hermes Birkin Bags

2. Influences on Marketing

2.1 Factors influencing customer choice

2.1.1 Psychological
● Influences within an individual that affects their buying behaviour
- Perception → How you perceive a brand will impact a customer's buying decisions
E.g Balenciaga. Customers refuse to purchase from them due to unethical behaviour involving
children = negative perception
- Motives/attitude → what motivates you to buy the product? What a person's attitude to a
certain product is. Comfort, health, safety, taste E.g dont like a certain colour, feature = won't
purchase. Negative attitudes to a business or its product may drive a business to change its
marketing strategies.
- Personality and Self-image → Consumers purchase products that suit their personalities and
reinforce the image that they want to create for themselves.
- Learning → the changes in an individual's behaviour caused by information and experience.
This assists with brand loyalty (when a favourable attribute towards a single brand results in
repeat sales over time. Direct and indirect. For E.g person tastes Coca-cola (direct) or see
someone else taste and enjoy it in an ad (indirect)

2.1.2 Sociocultural
● Forces exerted by other people and groups that affect an individuals buying behaviour
● Four sociocultural factors
- Social class → Influences the types of products they can purchase ➡ access to resources and
money. Rich purchase more than those with lower income
- Culture and subculture → Lives are influenced by our culture. That is our learned values,
beliefs, behaviours and traditions. For example, cultural prohibitions against consuming
products such as alcohol or meat, make it easy to understand some buying patterns.
- Family roles → Individuals tend to discuss with family members before purchasing a
particular product or service. May support an individual’s decision to buy, stop him from
purchasing it or suggest other options.
- Peer groups → refers to a group of people with whom a person closely identifies – they
adopt their attitudes, values and beliefs. For example, if a peer tells you that they had a bad
experience with a particular good and/or service, you may change your buying behaviour based
on this information.
2.1.3 Economic
● They impact both an individual's and a business's ability to spend money
● Influence of general economic trends (unemployment levels, interest rates, economic growth/decline),
along with socioeconomic status - which is determined by the person's level of income, occupation and
education

Business
Boom
● Invest in advertising → more available funds because customers are more inclined to spend =
opportunity for B to release and promote new products
Recession
● Customers less likely to spend = business refrains from marketing/releasing new products = pricing
strategies need to change → increased costs of redundancy

When a business's marketing is impacted, customer awareness is also impacted → this is a direct result of a
business's actions during a boom/recession

Customer
Boom
● Customers more likely to spend = increased choice of items and price ranges
● Customers tend to satisfy their wants
● Customers are more responsive and appealed by marketing
Recession
● Customers less likely to spend = reduce customer choice
● Only trying to satisfy needs and necessities
● Negative buying behaviour
● Less appealed by marketing

2.1.4 Government
● The government provides financial assistance to individuals and businesses = impacts customer choice
→ makes customers more likely to spend e.g covid job keeper payments of $750 to individuals
allowing them to have consumer choice and can satisfy needs and wants
● Government laws → gov laws and polices control consumer choices, business activity and spending
habits to either expand or contract levels of economic activity depending on prevailing economic
activity, thus affecting the marketing plan. E.g Government legalise certain drugs which provide
customers with a choice. Illegalised drugs restrict choice. Plastic straws illegal also affect customer
choice. Age restrictions on alcohol and tobacco
→ businesses behaviour controlled by Competition and Consumer Act 2010 (Cth)
● Regulatory bodies also impact customer choice E.g a cap on how many packets of panadol an
individual can buy → to restrict or guide customer buying behaviour. For example, dine and
Discover voucher guided and restricted customers to certain activities etc
2.2 Consumer laws
Focuses on Competition and Consumer Act (2010) CTH enforced by Australian Competition and Consumer
Commission (ACCC)
→ commonwealth legislation was introduced to replace random laws that were different across Australia
and were unfair to settle out consumer rights and obligations when selling goods and services

2.2.1 Deceptive and misleading advertising

● Under section 18 of the CCA 2010, D&M A is illegal, thus B’s are prohibited from advertising products
in a way that is untrue or unrealistic to consumers
● Businesses must advertise g&s in a truthful way that explicitly uniforms consumers of the product's
purpose and features to that consumers are not deceived
● This practice plays a fundamental role in business success as it supports brand image and prompts a
positive perception of a business and its products in the mind of consumers
● This subsequently leads to increases brand awareness and consumer satisfaction L.T
● Examples:
- Greenwashing - when a business lies about its environmentally friendly products
- Bait and switch - when a business uses advertising of a low priced product to lure in customers
where they are sold higher price products
- Dishonest advertising - ads could include misleading words or claim a product can do
something that it can
CASE STUDY
● Apple is an example of a successful business that ensures ACL is embedded in their practice as they
continue truthfully and accurately advertising the features of their iphone which has resulted in
consistent business growth
● Contrary to this, Ford is an example of a business that has failed to implement ACL in its practice and
has deceivingly advertised. = loss of customers, negative brand image, and reluctance to purchase thus
causing them to lose millions of dollars
2.2.2 Price discrimination
● ACL has a crucial role in protecting consumers from price discrimination by ensuring B’s refrain from
engaging and promote fair pricing strategies within marketing
● The setting of different prices for the same products in different markets according to factors including
demographics, location and competition
● Ikea in Australia is far more expensive than Ikea in Europe
● Price discrimination is when different prices are set for the same product in different markets:
- It is legal if there are higher costs involved, they are meeting competitors' price, or providing an
opening price based on customer willingness
- It is illegal if it reduces competition (unfair competitive advantage, unfair treatment), if there is
no valid reason if it is due to favoured treatment
● Electricity businesses charge household customers a higher price than business consumers. This practice
can detrimentally impose a negative portrayal of the business in the consumer's mind = negative
reputation = decreased customer base

2.2.3 Implied conditions

● Falls under section 61 of Consumer law → ACL ensures consumers have a right to remedies due to
customer guarantees when g&s dont comply with implied conditions or falsely advertise
● Implied conditions are the unwritten terms of a contract that are assumed to be of acceptable quality (do
what it says it will)
- Fit for purpose
- Well made and free of defects
- Safe and durable
- Match description
- Give results promised
● Cheap product shouldn't be expected to last long
● If business’s goods dont comply with implied conditions, consumer guarantees provide customers with
the right to certain remedies
● If marketing produces cheap, undurable, unsafe products that go agaisntg implied conditions, it will
negatively affect their brand image as they didnt live up to their expectations thus prompting loss of
customers, profit and overall success
● E.g a business promises that their face wash will clear all pimples ater two uses and it fails to do so
→ means item wasnt fit for purpose, undurable and doesnt give results promised

2.2.4 Warranties
A business’ promise to fix any defects in their goods or services
- If goods are defective or services are not carried out with due care or skill, business must compensate
the customer
- Compensation can be monetary refund or exchange for a different product

● Influences a business to give the promise of warranties as it improve their quality and service by
showing trust and reliability = positive business reputation
● Influences businesses to improve their quality as they dont want to have to give refunds

2.3 Ethical
Goes beyond legal requirements (not typically illegal but not always legal)
Truthful, use of safe materials
Unethical criticisms:
● Stereotyping
● Sex appeals
● Product placements
● Invasion of privacy (cookies)

2.3.1 Truth
● Should ensure advertising is truthful as they can be held morally responsible for misleading
● Can be complaint to ACCC and fair trading
● Main unethical marketing practices include:
- Untruth due to concealed facts
Omitting information in the advertisement (e.g - Coke Commercial. Coke don’t put in health
risks, therefore omitting information.)
- Exaggerated claims for promotional purposes (puffery)
- Vague statements (a hair product made for all hair wont work well for everyone)
Ambiguous consumer is then meant to assume what is actually being said
- Invasion of privacy

2.3.2 Accuracy and good taste in Advertising

● What is acceptable and not offensive to people may be offensive to someone else
● Being aware of younger audiences
● Common agreement as to what society deems acceptable and marketers must be aware of the
community and societies views
● CASE STUDY
Balenciaga's advertisement which used young children holding bondage teddy bears which the
community deemed as unethical and promoting such actions. Consumers and the general public reacted
which caused backlash for Balenciaga where consumers started to boycott the brand

2.3.3 Products that may damage health,

Consumer guarantees give people the right to a refund if a product is unsafe. Consumers can seek compensation
for damages and loss caused by a defect in the product.
Health warnings must be displayed on cigarette packs, they cannot be advertised or displayed
in stores
- Push to have similar health warnings for products containing alcohol and advertising junk food during
children's tv times as the marketing of junk food, which is portrayed as an essential part of a balanced
diet is heavily criticised by nutritionists and health advocates, especially as childhood obesity rates has
significantly increased.

CASE STUDY
Coca Cola, 2015 ‘brotherly love’ commercial representing a relationship between a young boy and his older
‘cool coke drinking brother’, representation of unhealthy product being ‘cool’ is an unethical practices as it
damages health
2.3.4 Engaging in fair competition
Businesses should be fair when referring to their competitors in their marketing and their advertisements should
not insult or make false assertions towards their competitors.

Australian Competition and Consumer Commission (ACCC) is a federal government independent authority that
ensures businesses engage in fair, legally acceptable competition & enforces competition and consumer act
2010

Unfair competitive behaviour includes:

- Price-fixing between competitors
- Long-term loss leader - undercutting smaller competitors and forcing them to engage in price war

2.3.5 Sugging
Sugging refers to selling under the guise of a survey or better known as a sales technique disguised as market
research. Sugging is legal however is unethical practices.

Sugging has long-term negative effects for market research:

• Cooperation of consumers becoming more difficult with response rates to surveys and questionnaires
decreasing.
• Indications argue that one-third of individuals now refuse to participate in telephone, online and personal
surveys due to the suspicion that the survey is a case of sugging.

CASE STUDY: McDonald’s

→ in 2012, McDonalds was found to have breached Spam Act 2003 by sending text messages regarding
happy meal deals, with no opt out option
→ in 2015, they were accused of not good taste in advertising by focusing on the toy in the happy meal
rather than the food itself

3. Marketing Processes

3.1 Situational Analysis

3.1.1 SWOT
The most important part of the marketing plan as this provides the business with scope and vision and direction
on where to go when it comes to implementing marketing strategies.
Involves the identification and analysis of the internal strengths and weaknesses of the business

YEEZY SWOT ANALYSIS

STRENGTH: WEAKNESS:
- Quality - Highly-priced
- Comfort - Hard to find/access
- Durability - Hard to clean
- Style

OPPORTUNITIES: THREATS:
- Easy to expand - Replicas
- Celebrity endorsement - Poor business reputation
- Start selling across a wide range of stores - Issues in manufacturing
- New tech to help with manufacturing
.

3.1.2 Product Life Cycle

The stages the product goes through from its launch on the market to its removal, and its associated levels of
sales, volume and market share.

Introduction: marketing of the product to bring awareness

Growth: sales start to increase and the product begins to hit an all-time high.
Maturity: sales start to stagnate and will eventually fall into decline.
Decline: product value and demand decline where the business will need to re-strategies and conduct a SWOT
analysis.
EXAMPLE

Yeezy product life cycle

Introduction 2015 → Business used celebrity endorsement to promote the product (yeezy + Kardashians)
Growth 2016-2021 → collab with Adidas + introducing different features
Maturity 2022 → Yeezy lost collaboration with Adidas - loss hype
Decline 2023 → Product became less available + more expensive = loss of customers + sales
→ negative business reputation = impacted product success

3.2 Market Research

Market research is the process of systematically collecting, recording and analysing information concerning a
specific marketing problem
Benefits of market research
● Marketing strategies perform better when they are based on accurate information
● Helps you to understand your customers
● Reduces the risk of introducing a new product into the market
● Leads to a more accurate marketing plan
● Helps you to evaluate your marketing strategies and track your progress

The steps of the marketing process

1. Determining information needs
- Data collected must be relevant to the issue being investigated. Ensuring info aligns with
objectives. Constantly ask questions concerning its ultimate use. It is useful in assisting the
business in achieving marketing objectives and increasing sales and profits as they ensure their
product is directed to customers' needs and wants.
2. Collecting data from primary and secondary sources
- Primary data: data collected from first-hand/original sources for the purpose of the specific
problem
 → eg: surveys, interviews, experiments and observation
→ eg: McDonald's = Maccas app, observations
Starbucks = survey to connect to wifi
UBER = review/ratings
- Secondary data: data already available for you (already conducted by someone else)
→ eg: internet, ABS, research reports
→ eg: UBER = uses ABS population statistics to determine busy areas
3. Analysing and interpreting data
- Data will be tabulated and then analysed to identify any trends or patterns present
- Appropriate course of action will be taken based on the conclusions drawn
- Analysed and interpreted to create useful info

3.3 Establishing Market Objectives

Marketing objectives = Measurable goals to be achieved through the business plan
Should be closely aligned with the overall business goals whilst staying consumer focused
Three common marketing objectives:
1. Increasing market share

2. Expanding the product range

3. Maximising customer service

Is influenced by market research → where you research trends and make it a goal

3.4 Identifying Target Markets

A target market is a group of customers with similar characteristics who currently, or who may in the future,
purchase the product.
Primary target market: is the market segment at which most of the marketing resources are directed. This is
where revenue will be generated most. This comprises of customer loyalty who make repeat purchases.
E.g Maccas, primary market 4-50 → kids, teens, family → affordable- low-middle class income →
convenient
Secondary target market: is usually a smaller and less important market segment, not the main target.

It allows a business to:

● Use its marketing resources more efficiently.
● Understand the buying behaviour of the target market better to meet their wants and needs
● Collect data more effectively and make comparisons within the target market over time.
● Refine the marketing strategies used to influence customer choice.

WAYS OF SELECTING TARGET MARKETS

1. Mass Marketing Approach
- Seeks a large range of customers
- Assumes that individual customers in this target market have similar needs.
- Businesses will produce large quantities of the product as the aim is to sell to large numbers of
customers that desire the product.
 - Woolies and coles, Kmart → broad, mass market, doesn’t target all customers needs
2. Market Segmentation Approach
- When the total market is subdivided into groups of people who share one or more common
characteristics.
- Enables a business to design a marketing plan that meets the needs of customers.
- Business categories through:
Demographic
Geographic
Psychographic
- Zara → gives customers what they particularly want and meets needs of style compared to
Kmart which is more basic, Bunnings, Maccas
- Zara implements marketing segmentation to identify and select their primary market
3. Niche Marketing Approach (micro-markets)
- narrowly selects target markets
- dedicates their products towards a particular group of people.
- known towards luxury brands and exclusive brands that avoid direct competition with large
department stores.
- E.g Prada, Chanel, Rolex, Lamborghinis, Bugatti, fishing, pescetarians

3.5 Developing Marketing Strategies

Marketing strategies are actions undertaken to achieve the business’s marketing objectives through the
marketing mix.
Refers to the 4 ps
● Product
- Marketing strategies are actions undertaken to achieve the business’s marketing objectives
through the marketing mix.
- Design, features, colour, packaging, style, what information is on the packaging
- Aims to satisfy customer need
● Pricing
- How is it going to be priced eg competition based
- Can influence customer behaviour, can't be too high or low
- The price must be ‘correct’ and factor in the cost of production
● Promotion
- refers to activities that businesses use to make customers aware, and informed and the ability to
persuade customers of their products
- Advertising - social media (YouTube, Facebook, Instagram, TikTok), Personal selling,
Relationship marketing, Sales promotion, Publicity, Public relations

3.6 Implementation, Monitoring and Controlling

Implementation
● The process of putting the strategies into action
● Successful implementation requires effective leadership and skilled/knowledgeable employees
● Employees need to have the skills and training necessary to assist in the transformation process and
ensure that the marketing strategies meet the business’s objectives.

Monitoring and Controlling

 ● Are intertwined

Monitoring: is the checking and observing of the actual progress of the marketing plan.
Controlling: involves the comparison of planned performance against actual performance and taking corrective
action to make sure the objectives are attained.

Two steps in the controlling process

1. The business establishes a key performance indicator (KPI). A forecast level of performance against
which actual performance can be compared.
2. Compare the actual performance (Budgets, sales statistics and cost analyses ) against the KPI.

3.6.1 Developing a Financial Forecast; comparing actual and planned results

● Entails with monitoring
● Compare planned vs actual

Financial forecasting refers to making predictions about the future and how well they think they will be
performing.
Two steps in developing FF
1. Cost estimate: How much the marketing plan is expected to cost?
2. Revenue estimate: How much revenue the marketing plan is expected to generate?

Key performance indicators (KPI’S)

● Sales analysis: comparing of actual sales with forecast sales to determine the effectiveness of the
marketing strategy.
● Market share analysis: allows a business to compare the success of their marketing strategies with
respect to their competitors.
● Market profitability analysis: a method in which the business breaks down the total marketing costs into
specific marketing activities (e.g. Advertising, transport, administration).

3.6.2 Revising the Marketing Strategy

● Entails with controlling
● Assess which objectives are not being met and take corrective action needed
● Necessary because of changing nature and society needs = success
● Always need to revise strategy in order to succeed → innovate, tap into new markets

Changes that can be made:

Changes in the marketing mix: Constant changes in the environment will lead to changes in the marketing
mix.
Product modifications: Continual upgrade of products allows a business to maintain a competitive advantage.
Price modifications: Needs to be modified in response to changes in the external business environment.
Promotion modifications: This will change based on the stage of the product life cycle.
Place modifications: Will have need to increase the distribution channels as the product becomes more
successful. Old markets may decrease due to demographic changes. Electronic may also be used.

4. Marketing Strategies
4.1 Market Segmentation, Product/service Differentiation and Positioning

Market Segmentation:
Involves a business dividing the total market into different groups of people based on :

CASE STUDY IMPACT

McDonalds ● Allows business to be resourceful and

Demographic efficient
● Age: happy meals, family box ● Establishes a set customer base → builds
● Social class: low to middle brand awareness, can lead to loyalty +
● Occupation: convenient for workers on the go
positive reputation
e.g drive through
- Satisfaction because customer needs
● Religion: Halal, veggie burger during lent
are adherent to/considered
Psychographic
● Maximise customer service
● Cater to consumers who dont have strict diet
● Increase market share = PROFIT
● Opinions: highly favoured amongst many
consumers
Geographic:
● Location: Mc Oz
● Climate: Summer menu
Behaviour
● Occasion: cheat day, road trips, 24-hour
service
● Loyalty: Maccas App, monopoly game

Product/service Differentiation and Positioning

→ process of developing and promoting differences between the business’s products or services and those
of its competitors to persuade customers their brand is more superior
Differentiation → Businesses will simply change certain aspects of their products/services to cater towards
the needs and wants of its consumers
This includes changing:
● Packaging or labelling
● Price
● Offering top-quality service
● Providing greater convenience and more features
Positioning → Positioning refers to the development of a products image in the mind of a consumer
relative to others in the market. How customers perceive the product and brand
● Often based on price, quality or benefits eg. Rolex, Ferrari and Chanel are seen as high-end, expensive
and high-quality. Whereas businesses such as cotton on or supre are seen as low quality and cheaper.

CASE STUDY IMPACT

Products are more tailored to an individual's needs

and as customers are often busy in this society they
desire personalised and convenient products and
services which will make them more inclined to buy.

Customers are more satisfied by a caring, high

quality value and service which will build the
business’s reputation, customer loyalty and profits.
--------------------------------------------------------------
Evoking a high position of a brand in a customer's
mind will make them see it as expensive, appealing
and high quality which will make them more likely to
purchase the product or service.

4.2 Products – goods and/or services

A product is a good or service designed to be used/consumed by consumers to generate a sale.

4.2.1 Branding
The way a product is branded affects the way the business is perceived in a customer's mind
→ the way in which a product is branded seeks to distinguish the business from competitors
- Logo
- Colour
- Font

4.2.2 Packaging
Refers to the way in which a product is enclosed to represent its quality and features (how it’s designed)
→ labelling (ingredients, important info, age guideline, T&C )

CASE STUDY IMPACT

APPLE
● A minimalistic but widely known (brand
mark) logo
● Easy to use appeal
● Their logo is consistent in representing their
key values across all platforms which is
● Their values and simplicty has
gained the appeal of professional,
wealthy people who want a seek,
‘clean’ look → their target market
● They create a luxury and innovative brand
 simplicity and class
● Apple uses extreme exclusivity where they
build secrecy over their inner workings which
creates buzz surrounding their new releases
● Has a sleek, clean aesthetically pleasing
packaging
● White and simple
● Uses tasteful packaging to promote the
exclusive, luxury feel
● Products are divided into convenient units
(charger in one, care paper/T&C in other,
laptop etc)
● Highly durable and functionable
● They have air pockets when opening the lid
which slows the ability to open the box,
creating anticipation
4.3 Price
Price and quality interaction
● Customers often associate quality of a product within its price (high price = superior quality)
positioning in the customers minds
= more likely to buy as they want a high
quality, durable, differentiated product
● Efficiently protects the product to show how
valuable it is and ensure the best first
interaction (good first impression = more
inclined to re purahcse)
● Its minimalism, cleanliness and logo attracts
consumers eyes in a world of chaos
= easily recognisable and differentiated from
competitors
● Positions the brand as luxurious
● Has become an iconic, identifiable and
wanted example of packaging
● A unique, easy to open and easy to use
experience
= satisfaction
● Customers feel special and excited opening it
= customer satisfaction = positive brand
experience
● Prestige or premium pricing strategy where high price is charged to give aura of quality and
● status
4.4 Promotion

4.5 Place/Distribution

4.6 People, processes and physical evidence

People, processes and physical evidence apply to intangible products, these are known as a businesses services
they provide:
- Tourism
- Entertainment
- Hospitality
People
Refers to the quality of interaction between the customer and those within the business who will deliver the
service.
● Businesses need to recruit and select the right workers and train them appropriately.
Processes
Processes refers to the flow of activities that a business will follow in its delivery of a service.
● Processes and procedures need to be consumer friendly and satisfy consumer needs.
● Processes need to be highly efficient will achieve customer satisfaction.
● Inefficient processes will lead to lost customers and damaged reputation.
Physical Evidence
Physical Evidence refers to everything that the customer sees when interacting with a business.
→ Location of the service being provided
→ Materials needed to carry out the service: signage, brochures, business cards, business logo and website.
● Free samples are difficult for services except for free trials.
● High quality physical evidence = image of value and excellence.

4.7 e-marketing
● E-Marketing refers to the strategic use of the internet to perform marketing functions/activities.
● Online shopping is considered a new segment which allows consumers to purchase products online
from the ease of their homes or wherever they are.
● Increase brand awareness
● Allows to grow and enter international markets
● E.g Amazon, Ebay, Shein, ICONIC

Advantages
● Inexpensive in comparison to traditional advertising methods
● Easy to use and monitor
● An effective method to gain exposure
● Possible for marketers to accurately measure the reach (the number of people exposed to the message)
and frequency (the average number of times someone is exposed) of SMA.

4.8 Global Marketing

4.8.1 Global Branding
→ Global branding is the worldwide use of a name, term, symbol, trademark or logo by a company to
differentiate their product from their competitor.

Businesses are increasingly using global branding for a number of reasons:

● It can be cost-effective because one advertisement can be used in a number of locations.
● It provides a uniform worldwide image.
● A successful brand name can be linked to new products being introduced into the market.
● Global recognition → allows businesses to tap into more markets and uphold a consistent brand
image and quality that is applied to every location in which the business operates in e.g Maccas
● = increased brand loyalty
● Allows a business to establish itself and override competitors → Apple, Ikea
● Allows business to maintain quality + positioning
● Allows business to easily customise goods and expand product range whilst also maintaining customer
base as customers will be open to trying new products without the business having to invest money on
advertisement (cost-effective)

4.8.2 Standardisation
● Uniform in quality
● Same all over the world
● Advantage being that this results in significant economies of scale.
● E.g Electrical equipment, Mobile phones, Soft drinks, Music, Cosmetics, Movies, Fast foods.

4.8.3 Customisation
● Changing certain features to satisfy a particular person's needs
● Assumes the way the product is used and the needs it satisfies are different between countries.
● McDonald’s customising their products where certain countries offer certain products (foods)
Korea = Bulgogi burger
Middle East = McArabia
Philippines = McSpaghetti
Paris = Nutella burger
● Requires market research and will add to operating and marketing costs. In some instances, even brand
names may need to be customised and changed because of different meanings in different languages.

4.8.4 Global pricing

● How a business coordinates its pricing policy across different countries
● Charging global customers different processes for the same goods due to exchange rates, tariffs,
transport costs
● Customised pricing
● Market customised pricing sets prices according to local market conditions = more flexibility than
customised pricing strategies

Market-customised pricing sets prices according to local market conditions.

● To avoid competition from a domestic business, the global business may need to adopt a market-
customised pricing strategy that allows marketers to vary the price depending on the level of demand
and competition within the overseas market.
Standardised pricing is the practice of charging customers the same price for a product anywhere in the world.
Two major risks are associated with this strategy:
● A domestic business may undercut the standardised price.
● Changes in the exchange rate may negatively impact on the exported price.

4.8.5 Competitive positioning

● This relates to how a business will differentiate its products in customers' minds
● Methods used by a business to stand out against competitors and position their products in a more
favourable manner
● Benefits, quality, prices and service
● Apple → white, sleek, minimalistic, clean