Presentation on theme: "Lesson Objectives To understand that a focus on the needs of the customer is essential to business success. To recognise the main elements of the marketing."— Presentation transcript:
2Lesson ObjectivesTo understand that a focus on the needs of the customer is essential to business success.To recognise the main elements of the marketing mix.To be able to identify key elements of the marketing mix in different contexts
3Starter activityJoe has just opened a new restaurant in York city centre.List the 3 MOST IMPORTANT things that Joe can do in order to make his business the most successful
4A business must always remember that… The Consumer is King (or Queen)In order for a business to survive it must provide what the customer wants.
5Businesses must understand what their customers wants from a product Identifying needBusinesses must understand what their customers wants from a productMeeting Customers NeedsIdentifying and anticipating is not enough. Businesses must actually meet the needs of the customersCustomer FocusAnticipating needsHow will customers needs change? Businesses must anticipate how fashions and trends will alter customers needs
6Task 1: Complete the table in your booklets. Explain, as a business person, why these three factors are important.You have 7 minutes
7The Marketing Mix In order to meet customers needs, a business must: Sell them PRODUCTS that they wantCharge a PRICE they are willing to payMake them available in the right PLACEMake them aware by using PROMOTIONThese 4 elements are known as the “4 Ps of the marketing mix”PRODUCTPRICEPLACEPROMOTION
8PlaceProducts must be available to buy at locations convenient to customers.Examples includeOnlineHigh StreetShopping centreIndustrial EstateCatalogueWholesalerThe suitability of a location will depend on the product or service.
9Jack’s RestaurantJack has just opened a new Mexican Restaurant called Tequila
10Task 2:In your booklets match the product to the location. Ensure you explain WHY you have made this decisionYou may match more than one product to the same locationA/B Extension: Jack has opened his new restaurant in the middle of York City Centre. Justify why you think this is a good location for his businessRemember for JUSTIFY questions you must analyse both sides of the argument.
11ProductConsumers often have lots of choices as to which products they can buyWhen you think of Baked Beans, which brand do you think of?
13ProductBecause the consumer has lots of choice, the business needs to make their product/service the one that people think of first.This can be done using different techniques
14Specialised VersionsTo attract a new audience,Example: Coca Cola brought out Coke Zero to appeal to men, as Diet Coke was seen as too feminineImprovements“New Improved Flavour”Example: Herbal Essence shampoo recently brought out an advertising campaign to promote the new formulaChanged PackagingTo alter the brand image, or make the product look more currentExample: When smarties went from being in a circular tube to a hexagonal tubeNew TechnologiesUsed all the time with electronicsExample: Retina displays on smart phonesWidening the product rangeBranching out into other marketsExample: A lot of chocolate bars are now drinks/milkshakes and yoghurtsIn your booklets write down your OWN definition of each of these strategies and come up with your OWN example
15Task 3: SuggestionsJack’s restaurant sells authentic Mexican food such as fajitas, nachos, burritos and tacos. He wants to attract new customers. Using the strategies above, suggest ways in which Jack could alter his product in order to increase sales.A/A* - Suggestions for each strategyB – Suggestions for at least 4C – Suggestions for at least 3
16PromotionPromotion involves telling consumers about your products or servicesThere are 5 main methods:PackagingTypes of PromotionAdvertisingMust protect the productRight size and shape to allow stacking for distributionHave consumer appealCreate seasonal looksTVRadioPostersBillboardsNewspapersMagazinesDirectMailingSalesPromotionPublicRelationsAlso known as JUNK MAILInvolves sending mail to targeted customersSpecial OffersPrice DiscountsVouchersFree giftsPrize CompetitionsPress ReleaseOrganising SponsorshipsDamage Limitation
17Task 4:Jack has found that business for his Mexican Restaurant is slow during the week.He wants you to suggest a way for him to boost business during a week day.In your booklets, suggest one way in which you think Jack could increase sales on a week day
18Price Strategy Definition A product or service needs to be the right price in order to attract customers. Ways of ensuring this is called PRICING STRATEGIESStrategyDefinitionAdvantagesDisadvantagesCost-PlusAdd % profit to the actual costEnsures a profit is madeMay not be able to sell product!Charge a price similar to competitorsPrice will be competitivePrice may not be profitableCompetitionStart with a low price to attract customersEncourages people to tryCannot last longPenetrationStart with a high price for a unique productAllows extra profits to be madeOnly lasts while there is no competitionSkimmingPromotionalSpecial price for a limited timeUseful to get rid of old stockOnly useful for a limited time
19Price Must reflect the value placed on the product by customers A high price usually = high qualityDetermines how much entrepreneurs earn from their work.Price set must allow you to make a profit
20The marketing MixIt is called a Mix because in order for a business to be successful it must have the right balance of Price, Product, Place and Promotion.It’s all about getting the mix right.
21Exam style questionsWhy may customer focus be easier in a small business than a large one?Students must explain why it might be easier in the small business (1 mark) and why it might be more difficult in the bigger business (1 mark)“Customer focus might be easier in the small business because they are likely to have a smaller customer base, therefore recognising the customer needs will be easier. In a larger business there will be more customers therefore it will be harder to understand what they want on mass”
221 mark per explanation (max 2) Possible benefits Outline 2 possible benefits to Tesco from getting all their directors to spend one week a year as shop floor employees1 mark per benefit (max 2)1 mark per explanation (max 2)Possible benefitsThey can see what its like to work for Tesco, therefore understanding their employees needs moreThey experience it first hand, and can therefore identify weaknesses in the businessThey can talk to customers, and can therefore identify their needs
23Identify the pros of selling in Superdrug (1 max) Explain pros (1 max) Superdrug wants to start selling Chanel products in their stores in the UK. Explain why Chanel might be right or wrong in trying to stop Superdrug selling its products. Justify your answerIdentify the pros of selling in Superdrug (1 max)Explain pros (1 max)Identify the cons of selling in Superdrug (1 max)Explain the cons (1 marks)Justify your final decision (2 marks)