Year 12 Business Term 1 PDF - Marketing Process, Market Research
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This document covers key concepts in marketing including the marketing process, market research techniques, and market objectives. It also explains target markets, types of market, market segments, and the marketing mix. Key performance indicators like sales and marketing share analysis are also introduced, providing students with a foundational understanding of business principles.
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MARKETING PROCESS The marketing processes are; - Situational analysis - Market research - Establishing market objectives - Identifying target markets - Developing marketing strategies - Implementing, monitoring and controlling THE PRODUCT LIFE CYCLE Product lifestyle consists...
MARKETING PROCESS The marketing processes are; - Situational analysis - Market research - Establishing market objectives - Identifying target markets - Developing marketing strategies - Implementing, monitoring and controlling THE PRODUCT LIFE CYCLE Product lifestyle consists of the stages a product passes through in its lifetime; introduction, growth, maturity and decline. Reasons for product decline are; - Changing public perceptions - New technologies - Replacements - New products - Economic fluctuations MARKET RESEARCH Market research is the process of systematically collecting, recording and analysing information concerning the a specific marketing problem The steps in the market research process are: - Determining information needs - Collecting data from primary (survey, observation, experiment) and secondary (census data) sources - Analysing and interpreting data 1. Outline the difference between primary and secondary data Primary data is collected by you and the research you conduct, whereas secondary data is research found by other people and already exists IKEA - MARKET RESEARCH 1. Outline some of the market research techniques IKEA uses Go and visit people's homes, talk to target audience, democratic design, always ensure they are up to date and make sure products are evolving. Use sustainable products to be able to lower prices. Looking for better ideas always. Meet customers everyday to inspire. 2. Evaluate the importance of market research on IKEA’s development of products The company conducts extensive market research to identify trends and preferences, allowing them to create products that truly resonate with their target audience. This research-driven approach ensures that IKEA is constantly evolving and adapting to meet the ever-changing needs and desires of its customers MARKET OBJECTIVES Marketing objectives are the realistic and measurable goals to be achieved through the marketing plan The three common marketing objectives are: - Increasing market share - Expanding the product range - Maximising customer service TARGET MARKETS - A target market is a group of present and potential customers that a business intends to sell its products or service to - The customers within a target market will have similar characteristics and for a business, marketing strategies can be altered/directed toward this targeted group of customers TYPES OF MARKET - Mass market - The mass market consists of all consumers; that is, people of both genders and all ages MARKET SEGMENT - A business may choose to target its products to a specific market segment; that is, that is, one area of a particular market. - A business can decide to segment its market to ensure that appropriate promotional and pricing strategies are developed. NICHE MARKET - Each market segment consists of a number of smaller markets, called niche markets. A business targeting a niche market has a specific, narrow customer base. - For example, Fernwood gyms were established to cater for women who want an only womens gym. MARKETING MIX 1. Product 2. Price 3. Promotion 4. place - Implementation refers to the process of putting the marketing strategies into operation - Monitoring means checking and observing the actual progress of the marketing plan - Controlling involves the comparison of planned performance and taking corrective action to make sure the objectives are attained FORECAST AND COMPARISON When evaluating alternative marketing strategies, a business must develop a financial forecast (predictions) that details the costs and revenues for each strategy Developing a financial forecast requires 2 steps: - Estimate the cost of the marketing plan - Estimate the revenue the marketing plan is expected to generate The three key performance indicators use to measure the success of the marketing plan are; - Sales - Marketing share analysis - Marketing profitability analysis
