2.13 Effective Marketing Marketing and the Competitive Environment Effective Marketing “Marketing is not something you do to people, it’s something you do for people. Marketing is the service of helping people make the best possible decision.” George Silverman “There are three things that you should spend your time doing: Marketing, marketing, marketing. It is the most important thing that someone growing a business should be doing. If you are not prepared to do that, then everything else is irrelevant.” Emma Harrison

2.13 Effective Marketing Effective Marketing In this topic you will learn about: The purpose of marketing Niche and mass marketing

2.13 Effective Marketing Marketing objectives - the purpose of marketing Marketing objectives are the goals that the firm sets to allow it to achieve its corporate objectives (overall aims of the business). Market segmentation – who is the target market? Market share – what is the market size and what share is your firm aiming for? Marketing mix: Product – what type and range of products will you sell? Pricing strategy – what price will you set for your products? Place – where will you sell and how will you distribute your product? Promotion – how will you effectively target your market?

2.13 Effective Marketing Niche Marketing Niche marketing occurs when a firm targets a small subsection or segment of a larger market Advantages: Premium pricing strategies due to lack of competition Greater focus on customer needs Unique selling point (USP) and often first mover advantage due to spotting a gap in the market Less scope for economies of scale in a niche market so firms can compete with larger organisations Less competition so greater market share

2.13 Effective Marketing Niche Marketing Disadvantages: Lack of economies of scale Changes in tastes or fashion can quickly affect the market Market growth can see larger firms join the industry High profit margins, but low sales can affect the market, especially during downturns in the economy

2.13 Effective Marketing Niche Marketing You can visit their website for further information at Innocent Smoothies have built up a reputation producing high quality smoothies in a niche market that is part of the larger drinks market. Use the above advantages and disadvantages to explain why they are in this position and what problems they might have because of niche marketing.

2.13 Effective Marketing Mass Marketing Mass marketing occurs when a firm targets the whole of the market rather than a particular segment Advantages: Economies of scale leading to lower costs per unit Cheaper advertising costs per unit Greater brand awareness Large target market allowing for high sales revenue Bulk buying

2.13 Effective Marketing Mass Marketing Disadvantages: High levels of competition Lower prices and fewer premium products due to less scope for adding value High levels of investment Diseconomies of scale

2.13 Effective Marketing Mass Marketing You can visit their website for further information at Heinz Baked Beans are a market leader in their industry. Use the above advantages and disadvantages to explain why they are in this position and what problems they might have because of mass marketing. You will need access to the internet to watch these Heinz adverts This one was banned! Are these adverts advertising a brand or a product? Discuss

2.13 Effective Marketing Consumer Marketing (B2C) and Business to Business Marketing (B2B) Business to consumer (B2C) marketing occurs when firms aim their products at the individual consumer (general public). There are millions of customers in these markets. Firms use a mixture of informative and persuasive advertising in order to sell their products. Business to business (B2B) marketing occurs when firms sell to other firms: Marketing is more informative There is greater specialism in these markets e.g. photocopiers or diggers There tend to be specialist bodies and magazines that provide guidance, training and information within these specific industries Individual B2B sales are much larger than B2C e.g. Toyota might sell a dealer 10 cars but a dealer will only sell 1 car to a consumer Watch this video on what’s new in B2B marketing You will need access to the internet to watch this video clip

2.13 Effective Marketing Activity: the Hotel Industry The UK Hotel Industry is dominated by a number of large hotel chains such as Premier Inn, Thistle Hotels, Marriot and Malmaison. However, it can also be seen to accommodate many small hoteliers who seem to survive despite the power of the large chains. Look at the following clips: The first about a young couple setting up in the hotel industry on their own The second looking at luxury budget hotels Analyse the reasons why different types of companies can operate in the hotel industry.