Year 12 Business Studies: Marketing

Role of Marketing

• Involves developing products and implementing strategies for promoting, pricing, and distributing to target customers.
• Essential to research consumer preferences and align business resources with market needs.
• Goals include maximizing sales, increasing market awareness, and enhancing consumer choice and satisfaction.

Strategic Role of Marketing Goods and Services

• Choice: Differentiation of products leads to consumer choice based on price, quality, and brand loyalty.
• Improved Standard of Living: Ongoing enhancements in product features cater to diverse consumer health needs, such as varied milk types.
• Employment: Creates jobs and income opportunities, enabling consumers to fulfill needs for goods and services.
• Brand Awareness: The consumer's knowledge of a product influences buying decisions; achieved through effective advertising.
• Increasing Market Share: Represents the percentage of total sales relative to competitors, driving sales and profitability.

Influencing Factors on Consumer Behavior

• Culture and Subculture: Shared values and traditions impact lifestyle choices such as clothing and food.
• Family and Household Role: Women often play key roles in purchasing decisions for healthcare and household products.
• Peer Groups: Consumers may alter buying choices based on friends' experiences and influences.
• Economic Factors: Economic trends, such as unemployment and interest rates, along with socioeconomic status, shape spending habits.
• Government Policies: Regulations affect business activities and consumer expenditures, influenced by laws like the Competition and Consumer Act 2010.

Consumer Laws

• Australian Consumer Law (2011): Governs interactions between consumers and businesses.
• Deceptive and Misleading Advertising: Prohibits false claims regarding product features, overstating benefits, and fake discounts.
• Health Warnings: Cigarette packs must display health risks; similar regulations proposed for alcohol and junk food advertising aimed at children.
• Fair Competition: Enforced by the Australian Competition and Consumer Commission (ACCC), preventing practices like price-fixing and misleading competitor ads.
• Sugging: An unethical marketing technique presenting as market research to mislead consumers.

Marketing Processes

• Situational Analysis (SWOT):
  • Strengths: Unique competencies of the business.
  • Weaknesses: Areas where competitors excel.
  • Opportunities: External factors that can be leveraged for growth.
  • Threats: External challenges that may impede objectives.

Product Life Cycle

• Each stage (Introduction, Growth, Maturity, Decline) demands tailored marketing strategies.
• Introduction Stage: Slow sales necessitate strong promotion for market awareness.

Market Segmentation, Differentiation, and Positioning

• Market Segmentation: Groups markets by demographics, geography, psychographics, and behavior, allowing businesses to cater specifically to segments.
• Differentiation: Distinguishing product features encourages a superior brand perception based on price, quality, and service.
• Positioning: Crafting product images relative to competitors, often based on attributes like quality and benefits.

Products

• Consist of goods/services aimed at fulfilling consumer needs, providing both tangible (physical attributes) and intangible (prestige, service) benefits.

Branding

• Refers to the reputation built over time, influencing consumer perceptions and loyalty through brand names and logos.
• Types of Branding:
  • Manufacturer Branding: Owned and marketed by the creator (e.g., Sunbeam).
  • Private Branding: Owned by a retailer or wholesaler (e.g., Myer’s Miss Shop).
  • Generic Branding: No-name products targeting budget-conscious consumers (e.g., Woolworths Select).

Packaging

• Physical presentation of products impacts consumer perceptions; it must attract attention, protect, and communicate brand identity.

Pricing Methods

• Cost-based Pricing: Set by adding a profit margin to production costs; limited by market demand understanding.
• Market-based Pricing: Aligns prices with supply and demand dynamics.
• Competition-based Pricing: Adjusts prices according to competitor pricing strategies.

Pricing Strategies

• Skimming: High initial pricing to recoup costs before gradually lowering prices.
• Penetration: Low introductory prices to gain market share rapidly.
• Loss Leaders: Selling at a loss to attract customers, hoping they purchase additional items.
• Price Points: Establishing fixed price levels based on consumer demand stability.

Prepare for your Year 12 Business Studies examination with this focused study on Marketing. This quiz covers the role of marketing, product development, and strategies for promotion, pricing, and distribution. Enhance your understanding of how to effectively target potential customers.