Unit 9: Principles of Marketing - PDF - BTEC Level 1/2

UNIT 9: PRINCIPLES OF MARKETING Unit 9: Principles of Marketing Level: 1 and 2 Unit type: Mandatory Guided learning hours: 30 Assessment type: External Unit introduction Marketing is a process used by businesses. It starts with understanding the needs and expectations of current and future custom...

UNIT 9: PRINCIPLES OF MARKETING Unit 9: Principles of Marketing Level: 1 and 2 Unit type: Mandatory Guided learning hours: 30 Assessment type: External Unit introduction Marketing is a process used by businesses. It starts with understanding the needs and expectations of current and future customers. It then moves on to examining how these customer needs can be fulfilled at a profit. This unit will explore why the role of marketing is so important and consider how businesses use market research to make key decisions. It was the marketing that led Microsoft into the games console market. Their research indicated that there was a significant growth potential in the market for selling games to young adults. This marketing strategy has led to Microsoft becoming a major threat to established companies such as Sony and Nintendo who were slower in recognising the opportunity presented by the young adult market. In this unit you will consider why companies participate in marketing activity. You will look at the different types of target markets and how marketing activity differs across these areas. You will examine the different ways that businesses try to understand the needs of a market. This will include looking at how research data is gathered and how it can be analysed to produce useful business information. Finally, you will look at the important process of developing and monitoring marketing activity and market strategy. You will consider the importance of the marketing mix and see how this is applied across different markets. Learning aims In this unit you will: A explore the role of marketing within businesses B consider how businesses use market research to make marketing decisions C explore the use of the marketing mix. Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – 131 Issue 8 – August 2020 © Pearson Education Limited 2020 UNIT 9: PRINCIPLES OF MARKETING Learning aims and unit content What needs to be learnt Learning aim A: Explore the role of marketing within businesses Topic A.1 Principles of marketing Definition of marketing Why marketing is important to businesses, including how it is used to gain market share, develop brand awareness, encourage customer loyalty How businesses use marketing, including: o to understand customer needs o to keep ahead of competitors o to communicate effectively with the public o to increase sales and profitability Understand the contribution of marketing to the achievement of corporate objectives Understand the use of SMART (specific, measurable, achievable, realistic, time- based) objectives within a marketing plan Topic A.2 What is a market? Be able to identify types of market, including Business to Business (B2B) and Business to Consumer (B2C) Understand the implications of the market targeted for the type of marketing activity undertaken Understand the difference between: o customer and consumer o goods and services markets o capital and consumer goods markets Be able to identify and define: o niche and mass markets o market and product orientated businesses Understand different types of business model including marketing, sales and advertising Understand how orientation of a business affects its choice of marketing, sales or advertising model Topic A.3 Principles of branding Understand the importance of branding for a business in creating a distinctive offering for a chosen market Understand the different dimensions of a distinctive brand, including the use of logos, colours, symbols, images and celebrity endorsements Understand the benefits to a business of building brands, including extensions, value and personality 132 Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – Issue 8 – August 2020 © Pearson Education Limited 2020  UNIT 9: PRINCIPLES OF MARKETING What needs to be learnt Learning aim B: Consider how businesses use market research to make marketing decisions Topic B.1 Researching the market Types and sources of data, including: o primary and secondary o quantitative and qualitative Understand the uses of different types of data to support marketing activity, including: o quantitative and qualitative data: – understanding trends and making predictions – identify areas of interest or gaps in the market – methods of collection, including desk research, questionnaires, interviews o internal and external data: – benchmarking against competitors – for producing a SWOT and PESTLE (situational analysis) Understand the use and benefits of situational analysis when making marketing decisions Topic B.2 Using market research in businesses Understand the purpose of research and analysis, including: o to identify target markets – finding a gap in the market based on the perceived strengths and weaknesses of current offerings o to identify competitor activity o to understand consumer behaviour and motivations – how does current business practice fit with the needs and wants of customers and how will customers react to the offering of the business? o to identify market trends – the value of a market (sales revenue) and the rate at which it is growing, the level of competition in the market and the number of products in the market Topic B.3 The value of market research to businesses Understand how to interpret key research findings to support marketing decisions concerning: o market size – by value, product/brand, customer o market growth – implications of fast and slow growing markets o market share – links to mass and niche marketing Understand the desirability of different levels of market share Understand how to identify external threats and opportunities – political, economic, social, technological, legal and environmental (PESTLE analysis) Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – 133 Issue 8 – August 2020 © Pearson Education Limited 2020 UNIT 9: PRINCIPLES OF MARKETING What needs to be learnt Learning aim C: Explore the use of the marketing mix Topic C.1 Understanding the 4 Ps of the marketing mix Product, including: o core and augmented product o Unique Selling Point (USP) o stages of the product life cycle – development, introduction, growth, maturity, decline o product portfolios and the implications to businesses of maintaining them Price, including: o pricing strategies – cost plus, mark-up, competitive pricing, price taking, skimming, penetration o advantages and disadvantages of different pricing strategies o elasticity of demand Place, including: o within the market o distribution channels o location within a distribution channel o locational factors for a physical business o ecommerce o relevance of channels to the size and type of the business Promotion, including: o the promotional mix o promotional budget o promotional channels o viral marketing, including the use of social media o ‘above the line’ and ‘below the line’ promotion o guerrilla advertising Understand the importance of consistency between different elements of the marketing mix Understand the difference between ebusiness and ecommerce Understand the benefits of ebusiness and ecommerce Topic C.2 Factors affecting the marketing mix Understand the importance of different influences on the marketing mix, including: o technology o economic issues o cultural issues o social issues o ethical issues o political issues Understand how to evaluate the effectiveness of a business’s marketing mix, including whether specific, SMART (specific, measurable, achievable, realistic and time-related), objectives have been met 134 Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – Issue 8 – August 2020 © Pearson Education Limited 2020  UNIT 9: PRINCIPLES OF MARKETING Teacher guidance Resources No special resources are needed for this unit. Assessment guidance This unit is externally assessed using a paper-based exam. The assessment must be taken by the learner under examination conditions. All questions in the exam paper will be compulsory. The exam is set and marked by Pearson. The exam lasts for 1 hour, 30 minutes and contains 50 marks. The first assessment opportunity for this unit is January 2014. Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – 135 Issue 8 – August 2020 © Pearson Education Limited 2020 136 Pearson BTEC Level 1/Level 2 First Certificate, Extended Certificate and Diploma in Business – Issue 8 – August 2020 © Pearson Education Limited 2020