1. This lesson you will…
Be able to define some key terms in the Business Studies course
Be able to explain how these key terms are applicable to a business
Be able to analyse the impacts of these key terms on a business and its operations

2. Target market
Definition – The precise profile of the customers a firm wishes to sell to.
Examples – WKD = 18 to 21 year old males *are they the only ones though?
Why target a specific market? – Focused market research and focused advertising on those targeted will be far more cost-effective and time efficient.

3. Segmentation
Definition - A strategy which involves dividing a large market into subgroups or ‘segments’ that share similar characteristics.
Examples -
Geographic = Customer location, Region, Urban/Rural, ACORN classification
Demographic = Age, Gender, Occupation, Socio-economic group)
Behavioural = Rates of usage, Benefits sought, Loyalty status, Readiness to purchase
Psychographic = Personality, Lifestyles, Attitudes, Class
Reason to segment - More beneficial as can better match customer needs
Offers better opportunities for growth
Enhanced profits for the firm
Retain more customers

4. An individual or group with a direct interest in the activities and performance of an organisation
Owners/shareholders, Managers, Employees, Customers, Suppliers, Banks, Local community, Government, etc.
Impact on them…
Stakeholders:
Sales
Trends & fashions
Competition

5. At A-Level things get more difficult!
Price
Promotion
Place
People
Process
Physical environment
Product
At A-Level things get more difficult!
Your ‘easy’ GCSE 4 P’s change into 7 P’s

6. Place (i.e. how the product/service gets to the consumer)
Promotion (i.e. how customers are made aware and/or persuaded to buy the product/service)
Price
Marketing Mix (MM)
But in this session we’ll stick with the ‘easy’ 4 P’s

7. Product
B2B or B2C – Business to Business/consumer. Who are the firm targeting?
Features & Design – what is it that makes consumers purchase a product? A Ferrari, an iPhone?
Product portfolio – How many products does a firm sell? Do Coca-Cola only sell coke? Why not?
Boston Matrix – where are the products positioned in the market in relation to others? Star, Question mark, Cash cow, dog?
Product Lifecycle – Where in the product lifecycle is it currently located? Introduction, growth, maturity, decline?

8. Place (i.e. how the product/service gets to the consumer)
Channels of Distribution:
Traditional
Modern
Direct
Benefits/Drawbacks of more/less intermediaries (middlemen) in the distribution channel?

9. Promotion (i.e. how customers are made aware and/or persuaded to buy the product/service)
AIDA model:
Attention, Interest, Desire, Action
Public Relations (PR)
Merchandising (POS/POP)
Sales Promotion
Direct Selling
Advertising

10. Price Skimming – high price to start with, then falls
Penetration – low price to start with, then rises
Predator/Destroyer – much lower than competitors
Loss leader – sold below cost price
Psychological – sold at .99 or .95

11. What others factors could change a firm’s marketing mix???
Price – if there is another financial crisis, will selling prices need to be altered?
If there is a ‘boom’, could prices be increased?
Place – improvements in technology like the internet and apps on phone. Will firm’s decide to close their retail shops?
What if the external environment changes… What will it mean for a firm’s Marketing Mix?
What others factors could change a firm’s marketing mix???
Promotion – social trends, like people spending more time using social media. Will ‘print advertising’ become a thing of the past?
Product – will materials or ingredients have to be altered due to new competitors launching new products into the market?

12. Welcome to the Business Studies class… here’s a present 
Work to do over the summer;
Answer ALL the questions
Even if you are unsure that your answer is correct, still have a go!
You will need to hand it in first lesson back in September