Unit 1 Outline Module 1: Innovations and Entrepreneurs Module 2: Small Business Module 3: Marketing Module 4: Accounting

Module 3 Marketing Function of marketing Marketing mix: the 4 Ps Market research

Session 1: Function of marketing Define marketing Explain the function of marketing and its relationship to business objectives and business strategy

What is marketing? Marketing is a process which provides the link between producers or providers of goods and services, and consumers.

Marketing concept The marketing concept is based on the belief that the best results are achieved through using an integrated approach to marketing. It involves four factors: Marketing concept Customer satisfaction is important Total organisation commitment to success. Goals and objectives are set Key performance indicators (KPIs) are set, such as achieving $X sale.

Marketing process The marketing process is a continuous study of the market by a business to ensure that it is always meeting the needs of its customers. Four steps: 1.Market research to identify potential customers and customer needs. 2.Marketing strategy enable the business to identify how it will ‘make its mark’ in the market. 3.Marketing mix are the tools at the disposal of the business for decision-making. 4.Evaluation to assess potential marketing improvements.

What is a market? A market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various needs-satisfying goods or services. Four basic types of markets exist: Consumer goods (e.g. soft drinks, food, household products) Businesses (e.g. accounting, law) Global (businesses that export their product) Not-for-profit and government

What is a target market? A target market is the market at which a product or service is primarily aimed. A target market usually aims towards one or several segment of customers. Four key bases of segmentation: Segmentation basis Segmentation variablesExamples of segments Behavioural-Needs -Purchasing frequency -Economics, social -Never, rarely, frequent Geographic-Region -Size of city -Global, country, state -Number of residents Demographic-Income -Gender -< $20K, 20-$50, $50+ -Male, female Psychographic-Social class -Personality -Low, lower middle, etc. -Compulsive, ambitious

How are products marketed? Slip Slop Slap Wren Yellow Pages Water is Life

How are products marketed? 1.Why do you like certain commercials? Why do you dislike certain commercials? 2.What things in a commercial make you want to buy a product? 3.Have you ever bought anything just because of a commercial you saw? Did the product do what the commercial said it would? 4.How can commercials make their products look better than the rest while still being honest?

Session 2: Market Research Explain market research, including information needs, data collection tools and techniques, analysis and interpretation. Conduct and analyse market research relevant to the business you are designing.

What is market research? Market research is the systematic approach used to assist in making decisions about consumers and the marketplace.

Why is market research needed? Market research is needed to: Reduce the level of risk or uncertainty attached to introducing a new product or service. Assess the current products, ads, packing and determining whether changes need to be made Predict future changes or trends in a product or service.

Systematic approach to market research Define the problem and establish the objectives Determine the research design (e.g. exploratory via reading articles; descriptive via consumer surveys; causal to find the cause and effect of an action) Identify and access information types and sources. Design data collection approaches, forms and sample size (e.g. questionnaire, focus group, experiment) Collect and analyse dataPrepare and present final report

What market research will you conduct? Apply the market research steps to your own business. Consider what your objectives are and how you will achieve them.

Session 3: Key Elements of a Marketing Plan Define, explain and use the key elements of a marketing plan to construct a marketing plan relevant to the business you are planning in class. Including: Establishing objectives; Market description; The marketing mix (product, price, place and promotion); and Product Life cycle: innovation, introduction, growth, maturity, decline and extension strategies.

Establishing objectives State the business’ marketing goals for the coming financial year.

Market description Describe the business’ target market Include a SWOT analysis of the target market: Strengths All the marketing aspects a business does better than its competition. Weaknesses Marketing aspects not achieved well by the business. Opportunities Any marketing opportunities available to the business. Threats Any factors or events that may damage the business.

Marketing mix The marketing mix is comprised of four variables. Sometimes called the 4Ps of marketing. PRODUCT What is being sold? PRICE For how much will the product be sold? PLACE Where will the consumer get the product? PROMOTION How will potential customers be informed about the product?

Create a marketing mix for a product Each group has one product that they must market. PRODUCT What is being sold? PRICE For how much will the product be sold? PLACE Where will the consumer get the product? PROMOTION How will potential customers be informed about the product? 1.Create a matrix describing the marketing mix (4Ps) for your product. 1.Using the marketing mix, create a 30-second ad for the product and present this to the class.