2:1 The Role of Marketing 2:2 Market Research Target market

Marketing is: The group of

finding the needs of How can a business increase sales? Before a business starts, it is important that the owners customers who a
customers and know exactly who their customers are likely to be. business aims to sell
demonstrating how a its products to
1. Advertise the product or service more in order
business fulfils those to raise awareness of what is on offer
Primary Pros Cons
needs in order to Primary research
 Cheaper than interviews  Difficult to predict how many
increase sales  Easily target certain people will be completed Data collected first-
2. Introducing a new model that will appeal to Questionnaire  people may not understand hand (field research)
more customers the questions
Secondary research
• Questions can be explained • Expensive
Marketing 3. Increase the range of products or services Data collected by
Knowledge Organiser

Interviews • Customers can be easily • Customers may feel

Finding the needs of available targeted uncomfortable
others (desk
consumers and • Save money before making • Costly to set up research)
demonstrating how a 4. Reducing the price to sell more products - but Trials products widely available
will profits increase? Qualitative data
business meets those Focus groups
• Data is accurate to the target • Only small groups that take Data based on
market part so expensive
needs 5. Selling the product in different countries to opinions of those
target a wider range of customers being asked
Market research Secondary sources include census data, websites, internal
The collection of data to data and newspapers. Quantitative data
6. Selling by different methods i.e. Online or Pros: cheap and already available to use Data based on facts
help business decisions offering digital distribution
Cons: not exactly what you need and could be out of date or numbers

A watch can be 2:3 Market Segmentation 2:4 The Marketing Mix - Product
Unit 2: Marketing

segmented in a number
of ways: The product is a vital element of the marketing mix.
The product or service must be something customers
Age - Disney theme for Location actually want.
children, plain for
adults Income Lifestyle
Advertising a new product more widely can increase
Gender - made for sales and extend the life of a product. Introduction
men or women A product is first
made available for
Income - watches can sale
Market Growth
be very cheap at £10 Gender segments Age Reducing the price of a product can help to maintain
others can be very Sales are growing
sales and extend the life of a product.
expensive at £1000’s strongly
Maturity
Lifestyle - special Sales are at their
watches for diving, Market segmentation Selling in new markets i.e. abroad, opens the product highest level
running and other Splitting the market for a product into different parts, up to a wider range of new customers and so extends Decline
outdoor sports or segments the life of the product Sales are falling
 2:4 The Marketing Mix - Price Place is: 2:4 The Marketing Mix - Place
Competitor pricing
concerned with
A price is set based on
A business must take great care when setting the price of where the
prices charged by
products and services. Too low and the business won't product is sold
competitors
make enough profit, too high and customers will not buy from and the
Cost-plus pricing
distribution of
Adding a percentage
goods
of profit onto the total
The costs
costs of making a The price
to produce
product charged by Physical
the
Penetration pricing other
product or distribution
businesses
Knowledge Organiser

A price is set lower service Distribution of

than competitors goods using a
Skimming Factors physical presence
A high price is charged affecting Advantages of digital distribution Disadvantages of digital distribution
initially for those the price
Digital distribution
customers who want The business.  Customers can access products  Not all goods are suitable for digital
Distribution of and services 24/7 distribution i.e. bread
the latest products If new, The  Goods are downloaded so  Not all customers have access to
customers may goods and services
Promotional pricing income of available quickly the internet
not know the
the target digitally by  No physical product to deliver so  Easier for illegal content to be
Prices are reduced to name and will the business saves money copied and distributed which means
be reluctant to market downloading from
give sales a boost the business loses sales
pay high prices a website

Aims of promotion 2:4 The Marketing Mix - Promotion Assessment Information Possible questions
Unit 2: Marketing

 To inform customers
about a product or service 1. Identify which price a business
Your Paper 1 will be in the morning on should charge.
Radio
 To keep a business ahead Friday 24th May
of its competitors Printed Websites
media 2. Explain one advantage and one
Number of marks available: 80 disadvantage of using focus groups.
 To create or change the
image of a business, its Time allowed: 90 minutes
products and services Social 3. Analyse one benefit of a businesses
TV
media Answer ALL of the questions distribution channel.
 To maintain or increase Advertising
sales media
The first 15 questions will be multiple 4. Analyse two benefits of using
choice - you must only select ONE questionnaires to gather market
answer, selecting two will score 0 marks. research.
Point of sale promotions
The other questions will include a range 5. Evaluate whether or not a business
Price reductions, loss leaders, competitions, free samples
of 2, 3, 4, 6, 7, & 9 mark questions should use social media to promote
Advertising campaign
its products.
A series of advertisements often using different advertising media
Advertising media
The methods by which a business can advertise a product State Explain Analyse Recommend Evaluate