UNIT 5.3
MARKETING.
CHAPTERS 16
The syllabus states that you should be able to identify the main elements of a marketing
strategy and to explain the main elements of the marketing mix. These notes divide the
area into three parts, marketing in general, marketing strategy and by far the largest
part, the marketing mix.
Marketing in general.
Definition: the process of identifying and satisfying the needs of the consumer.
The Marketing Concept is the notion that a business focuses on customer needs before
production.
Marketing is not only selling, as a lot of marketing occurs before the good or service is
ready for selling.
Market refers to people, not place. It is concerned with existing and potential buyers
A Marketing Plan contains marketing objectives and strategies for achieving them. It
draws up a timetable. It estimates costs. Any of the rest of the information in this chapter
could be included in an answer on a marketing plan.
.
Marketing Strategy.
Steps:
1. Analyse the market
2. Identify the target market (a precise description of the customer group to aim at).
3. Analyse the results of MR on the target market. Look for product position.
4. Devise the Marketing Mix.
MR will identify the target market. It will also divide the market into categories of
customers. This is called Segmentation. Segmentation can be of two types:
1. Demographic (age, income, area, class or sex).
2. Psychological (attitudes and tastes).
Segmentation may come up with a niche (gap) or a target market.
The Marketing Mix.
PRODUCT (good or service)
The following is a list of points that could be used to build up an answer on product as
part of the marketing mix.
 Product Positioning (where it fits among its competitors).
 Core Product is the main function of the product
 Product Portfolio or Range.
 The Life Cycle of a Product (introduction, growth, maturity, saturation and decline).
Discuss the factors that affect the Life Cycle. Point out how some goods come back to
life.

Product Design (functional, costs, aesthetics, social responsibility and customer
expectations).
 Branding (this could also be dealt with under Promotion). Branding is providing a
distinctive name and/or logo for a good or service. The advantages of branding are:
1. Easier to recognise.
2. Easier to introduce new products.
3. Creates loyalty.
4. Helps to segment the market. Same manufacturer, different brands (Volkswagan,
Skoda)
5. Image of quality = higher price.
6. Brand image can appeal to a particular market (Pepsi Max).
 Own Label Brands (Generics)
Features: cheaper, retailer controls quality, manufacturer does not have to advertise.
Disadvantages: quality? Lower margins, Retailer can easily switch suppliers

Packaging protects (eggs); presentation (attracts); information; identity (shape of
Toblerone)
PRICE
Factors affecting Price.
1. Costs.
2. Competitors.
6. Profits.
7. Taxes.
3. Price Strategy.
4. Demand.
5. Supply.
Mark Up = Profit expressed as a percentage of cost price.
Pricing Strategy = Choosing a price that will achieve the objectives of the marketing
plan.
High Price Strategy.
 Premium Pricing/Price Leadership (image of superior quality).
 Mark-up strategy
 Price Skimming (launch of new dvds or PS games).
 Customer expectations (Mercedes).
Low Price Strategy.
 Penetration Pricing.
 Price Discrimination (Bus Eireann charge students lower fares, Ryanair).
 Predatory Pricing (price war, deep cuts).
Included in price is break-even analysis. You may need to be able to draw a break-even
graph using figures supplied.
PLACE
Channels of distribution.
The various paths by which goods get from the producer to the consumer.
Services
 Can be provided and consumed in the same place (restaurant)



Produced in one place and distributed widely (tv, radio)
Provided over internet (banking)
Ordered and delivered (repairs to house)
Industrial goods are bought by other businesses.
Consumer goods.
Functions of wholesaler.
1. Breaks Bulk.
4. Transport.
Types of wholesaler.
1. Traditional / General.
4. Agent.
5. Broker.
6. Specialist (Easons).
Functions of retailer.
1. Breaks Bulk.
4. Credit.
5. Sales Promotion.
Types of retailer.
1. Independent.
4. Franchises.
5. Department Stores.
7. Convenience Store
2. Storage.
5. Merchandising.
3. Credit.
6. MR.
2. Cash and carry.
3. Mail order.
7. Voluntary group / Symbol wholesaler.
2. Delivery.
3. MR.
6. Personal touch.
7. After sales service.
2. Multiples and Chainstores.
3. Supermarkets.
6. Non Store retailers.
New Developments.
 EPOS (electronic point of sale). Scanner at checkout gives instant price and stock
control.
 EFTPOS (electronic funds transfer at point of sale). Debit card.
 Big shopping centres on ring roads (M50).
 More foreign stores.
 More TV sales.
 Dvd rental now online
 Shops closing down due to recession
 Prices dropping
 Less credit
 Internet shopping.
Factors which influence the producer’s choice of retailer.
1. Image.
2. Target market.
3. Ease of delivery.
4. Payment
arrangements.
6. Special Conditions (some retailers may insist on not supplying rivals).
PROMOTION.
Definition: The efforts made by the seller to communicate with the target market in order
to sell.
Promotional Mix is advertising, sales promotion, public relations and direct selling.
ADVERTISING
Definition: The use of the media to promote the sale of goods and services.
Types.
1. Informative.
Reminder.
2. Persuasive.
3. Competitive.
4. Generic.
Why advertising is important.
 At the launch of a new product.
 To create loyalty to a Brand name.
 To increase sales.
 To protect sales.
 To inform.
 To create an image.
The Media Mix.
1. Electronic (TV, radio, cinema, Internet).
2. Press.
3. Posters.
4. Direct Mail.
5. Buses etc.
Factors affecting the choice of medium
 Target market
 Budget
 Aim (detail info= print. Emotional response=TV)
How to Plan an Advertising Campaign.
1. Identify Market
2. Choose Advertising Agency
3. Message to be conveyed
4. Decide Budget
5. Decide Media Mix
6. Launch
7. Monitor and Review (sales figures, more MR, make changes)
5.
Testing the effectiveness of advertising.
AIDA.
Does the advertising attract the attention of the target market? Does it arouse interest? Is
the interest transformed into desire? Is the audience taking the action desired by the
advertisement?
Ethics in Advertising.
Consumer Information Act 1978 (misleading). National Consumer Agency.
Advertising Standards Authority of Ireland (self-regulatory, self-financing, ‘legal, decent,
honest and truthful).
Government Regulations (ban on tobacco).
SALES PROMOTION
Definition: A range of activities, other than advertising, used to promote sales.
Types: club points; free samples; cut-price offers; etc.
Merchandising
PUBLIC RELATIONS
Definition: Creating, maintaining and improving the public image.
Types.
1. Press releases.
2. Press conferences.
3. Sponsorship.
4. Product
launches.
5. Trade shows.
6. Exhibitions.
7. Charitable donations
PR can be direct or indirect. (Politeness, appearance etc.).
DIRECT SELLING (also called Direct Marketing or Personal Selling)
Types.
1. Sending promotional material to specific customers
2. Telemarketing (good for feedback).
3. Door to door.
4. Sales Representatives.