1. MARKETING The importance of and growth of MARKETING

2. The Growth of Marketing How did marketing evolve?

3. The Revolution! The Industrial Revolution was a time of dramatic change, from hand tools and handmade items, to products which were mass produced by machines. Workers became more productive, and since more items were manufactured, prices dropped, making exclusive and hard to make items available to the poor and not only the rich and elite. Life generally improved, but the industrial revolution also proved harmful. Pollution increased, working conditions were harmful, and capitalists employed women and young children, making them work long and hard hours. The industrial revolution was a time for change. For the better, or for the worse.

4. The rise in the importance of Marketing…. ECONOMIC GROWTH – more disposable income since WW2 – increase in demand for products and services FASHION – considerable and regular changes in fashion – sportswear TECHNOLOGY –new products are being developed all the time COMPETITION – increase in the number of firms producing goods and services

5. MARKETING DEFINED:- Give the consumer what they want

6. How does it all work? Socially – fashions changed Politically – laws changed – bike tests Technically – harder to work on a bike by yourself Economically – bikes were becoming more expensive 1979 – UK market for superbikes was growing 1983 – sales fell by 75%

7. MARKETING OF SUPERBIKES

8. The importance of marketing Using an appropriate marketing strategy means that firms should Provide a product or service that people want to buy Meet its aims and objectives Make a profit Keep customers happy Make a good use of resources

9. 2 main approaches to marketing Market orientated Product orientated

10. PRODUCT ORIENTATION More common in the past Business focuses on the product Increased competition means likelihood of success is reduced Technical organisations tend to concentrate on the product MARKET ORIENTATION Led by the market – tries to analyse the needs of the consumer Responds quickly to changes in the market Strong position to meet the challenge of new competition Any business with a large product range

11. Solution:- Product or Market? 1.Initially product orientated 2.No particular use for the adhesive 3.Little relation to the market 4.No demand from the consumer 5.Once a use was discovered became market 6.Free samples to develop needs of consumer Why was it successful 1.Met the needs of the consumer 2.Technological breakthrough (USP) 3.No competition 4.Education of consumers 5.Notes became fashionable and irreplaceable 6.Developed brand loyalty

12. POST IT NOTES It is possible to develop from product orientated business to a market or have elements of the business that are one or other of these. Post-its are now very market orientated – they have a large product range:

13. What makes a firm choose product or market orientation? The Productfirms operating in new areas will be product Policyif safety and quality are the main objectives the firm will be product Managementbackground of management will determine choice Competitiona firm in a competitive market is likely to be market

14. MARKET RESEARCH The collection, collation and analysis of data relating to the marketing and consumption of goods and services Used to help firms keep ahead of changes in the market – a firm that has not carried out market research for a product will have less chance of success.

15. WHAT CAN A COMPANY RESEARCH?

16. TYPES OF RESEARCH DESK RESEARCH Secondary Data Information already exists Can be internal or external FIELD RESEARCH Primary Data Information is first hand and must be collected Can be internal or external Eg:-

17. STAGES OF MARKET RESEARCH Decide on purpose Choose appropriate method Decide on size and composition of sample Carry out research Gather and analyse data Present findings and conclusions in report format

18. PROBLEMS WITH MARKET RESEARCH Market research is not 100% dependable – well researched product do fail. Sinclair C5 and the Delorean are examples of this 90% of new products fail Average launch cost = £1m

19. Why is MR unreliable Human Behaviour Sampling and bias Items that have been researched have a better chance of success

20. PRIMARY RESEARCH Gathering information directly from people within your target market – using Questionnaires Interviews – personal and telephone Postal surveys Observations Technology - EPOS and video Focus groups Consumer panels

21. THE QUESTIONNAIRE When to use a questionnaire? What can questionnaires measure? What kind of questions do we ask? Who asks the questions? Why are these points so important?

22. Writing a Questionnaire Market research using questionnaires is expensive and its results may influence major decisions such as whether to launch a new product. Mistakes can be very costly. What are the key features of writing a good questionnaire?

23. 1.Clearly defined research objectives 2.Ensure the questions are not leading 3.Ensure that the meaning of each question is clear, perhaps use a pilot or test run 4.Use mainly closed questions – ones with a limited number of pre-set answers 5.Include a few opens questions to allow more depth of understanding 6.Make sure you ask for full demographic details eg sex, age, occupation and buying habits.

24. Other methods of research… Consumer Panel Observation Hall Tests Dustbin Audits Test Marketing

25. MARKET SEGMENTATION

26. SOCIAL CLASS For the 2001 population census, the Registrar General divided social classes into 8 area based on employment status and conditions – this is a change from the previous class system which was graded A – E Social classifications are very useful when aiming a product at a particular segment of the market

27. CLASS 1CLASS 1 – Higher Managerial and professional occupations – corporate manager (A) CLASS 2CLASS 2 – Lower Managerial and professional occupations – journalist, nurse (B) CLASS 3CLASS 3 – Intermediate occupations – secretary, driving instructor (C1) CLASS 4CLASS 4 – Small employers and own account workers – publican, taxi driver (C1) CLASS 5CLASS 5 – Lower supervisory, craft related occupations – plumber, butcher, train driver (C2)

28. CLASS 6CLASS 6 – Semi-routine occupations – shop assistant, traffic warden (D) CLASS 7CLASS 7 – Routine occupations- waiter, road sweeper (D) CLASS 8CLASS 8 – Never worked – long term unemployed (E) Products will be aimed at certain classes specifically. Most firms are interested in segments 1-4 as they tend to have more disposable income.

29. JACQUIE ROSS: Strat – random within groups Quota – targets to meet Cluster – population grps Multi – one sample from another JACQUIE ROSS: Strat – random within groups Quota – targets to meet Cluster – population grps Multi – one sample from another