2. 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 mix.
To be able to identify key elements of the marketing mix in different contexts

3. Starter activity
Joe 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

4. A 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.

5. Businesses must understand what their customers wants from a product
Identifying need
Businesses must understand what their customers wants from a product
Meeting Customers Needs
Identifying and anticipating is not enough. Businesses must actually meet the needs of the customers
Customer Focus
Anticipating needs
How will customers needs change? Businesses must anticipate how fashions and trends will alter customers needs

6. Task 1: Complete the table in your booklets.
Explain, as a business person, why these three factors are important.
You have 7 minutes

7. The Marketing Mix In order to meet customers needs, a business must:
Sell them PRODUCTS that they want
Charge a PRICE they are willing to pay
Make them available in the right PLACE
Make them aware by using PROMOTION
These 4 elements are known as the “4 Ps of the marketing mix”
PRODUCT
PRICE
PLACE
PROMOTION

8. Place
Products must be available to buy at locations convenient to customers.
Examples include
Online
High Street
Shopping centre
Industrial Estate
Catalogue
Wholesaler
The suitability of a location will depend on the product or service.

9. Jack’s Restaurant
Jack has just opened a new Mexican Restaurant called Tequila

10. Task 2:
In your booklets match the product to the location. Ensure you explain WHY you have made this decision
You may match more than one product to the same location
A/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 business
Remember for JUSTIFY questions you must analyse both sides of the argument.

11. Product
Consumers often have lots of choices as to which products they can buy
When you think of Baked Beans, which brand do you think of?

12. Product

13. Product
Because 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

14. Specialised Versions
To attract a new audience,
Example: Coca Cola brought out Coke Zero to appeal to men, as Diet Coke was seen as too feminine
Improvements
“New Improved Flavour”
Example: Herbal Essence shampoo recently brought out an advertising campaign to promote the new formula
Changed Packaging
To alter the brand image, or make the product look more current
Example: When smarties went from being in a circular tube to a hexagonal tube
New Technologies
Used all the time with electronics
Example: Retina displays on smart phones
Widening the product range
Branching out into other markets
Example: A lot of chocolate bars are now drinks/milkshakes and yoghurts
In your booklets write down your OWN definition of each of these strategies and come up with your OWN example

15. Task 3: Suggestions
Jack’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 strategy
B – Suggestions for at least 4
C – Suggestions for at least 3

16. Promotion
Promotion involves telling consumers about your products or services
There are 5 main methods:
Packaging
Types of Promotion
Advertising
Must protect the product
Right size and shape to allow stacking for distribution
Have consumer appeal
Create seasonal looks TV
Radio
Posters
Billboards
Newspapers
Magazines
Direct
Mailing
Sales
Promotion
Public
Relations
Also known as JUNK MAIL
Involves sending mail to targeted customers
Special Offers
Price Discounts
Vouchers
Free gifts
Prize Competitions
Press Release
Organising Sponsorships
Damage Limitation

17. Task 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

18. Price Strategy Definition
A product or service needs to be the right price in order to attract customers. Ways of ensuring this is called PRICING STRATEGIES
Strategy
Definition
Advantages
Disadvantages
Cost-Plus
Add % profit to the actual cost
Ensures a profit is made
May not be able to sell product!
Charge a price similar to competitors
Price will be competitive
Price may not be profitable
Competition
Start with a low price to attract customers
Encourages people to try
Cannot last long
Penetration
Start with a high price for a unique product
Allows extra profits to be made
Only lasts while there is no competition
Skimming
Promotional
Special price for a limited time
Useful to get rid of old stock
Only useful for a limited time

19. Price Must reflect the value placed on the product by customers
A high price usually = high quality
Determines how much entrepreneurs earn from their work.
Price set must allow you to make a profit

20. The marketing Mix
It 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.

21. Exam style questions
Why 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”

22. 1 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 employees
1 mark per benefit (max 2)
1 mark per explanation (max 2)
Possible benefits
They can see what its like to work for Tesco, therefore understanding their employees needs more
They experience it first hand, and can therefore identify weaknesses in the business
They can talk to customers, and can therefore identify their needs

23. Identify 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 answer
Identify 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)