Aims and objectives
 You will be able to describe functions of
marketing
What is marketing
 Marketing is used to identify the
customer satisfy the customer,
and keep the customer.
What is marketing
Marketing is used to identify the customer,
satisfy the customer, and keep the customer.
Functions of marketing
 market research
 market analysis
 marketing strategy
 advertising
 brand promotion
Market research
 Market research is essential to the growth of any
business. Knowing who you will market your
product to and how you will market your product
increases advertising
 It is a way to gather research about people
preferences for products in your market place i.e.
through analysing what is already out there
 Market research allows marketing companies to
get an advantage over the competition.
Market research
Market analysis
 Market analysis is detailed marketing research that
evaluates the market. This information helps companies
to forecast sales and manufacturing, improve products
and plan for new ones. It helps them to structure pricing
and knowing which locations will sell the most products.
 Finally, market analysis allows companies to analyze
competitor information, to better understand their
customers and to develop products they will purchase.
Marketing analysis
David Aaker suggests the following enables you to analyse the market
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Market size (current and future)
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Market growth rate
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Market profitability
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Industry cost structure
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Distribution channels
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Market trends
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Key success factors
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The goal of a market analysis is to determine the attractiveness of a market, both now and in the
future. Organizations evaluate the future attractiveness of a market by gaining an understanding
of evolving opportunities and threats as they relate to that organization's own strengths and
weaknesses.
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Organizations use the findings to guide the investment decisions they make to advance their
success. The findings of a market analysis may motivate an organization to change various aspects
of its investment strategy. Affected areas may include who they employ i.e. expansion or
contraction, what they buy and how they promote a product.
Market size
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The market size is defined through the market volume and the market
potential. The volume is dependant on the quantity of consumers and
their ordinary demand. Qualitative measuring mostly uses the sales
turnover as an indicator. That means that the market price and the
quantity are taken into account. Besides the market volume, the market
potential is of equal importance. It tells you what the upper limit of the
total demand and takes potential clients into consideration. Although
the market potential is rather fictitious, it offers good values of
orientation. The relation of market volume to market potential provides
information about the chances of market growth. The following are
examples of information sources for determining market size:
Government data
Trade association data
Financial data from major players
Customer surveys
An example would be a share
Apple Soars to Third Place
in U.S. PC Market With 10.7%
Share
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Research firms Gartner and IDC today released their
preliminary quarterly personal computer shipment
data, offering up a picture of market performance
during the second quarter of 2011. Overall, the PC
industry exhibited small growth on a worldwide scale,
with unit shipments growing by about 2.5% between
the second quarters of 2010 and 2011. But shipments
in the U.S. actually declined year-over-year by about
4-6% according to the two firms. Gartner in particular
points to the ipad as having had a detrimental effect
on PC shipments for the quarter. "Given the hype
around media tablets such as the iPad, retailers were
very conservative in placing orders for PCs. Instead,
they wanted to secure space for media tablets. Some
PC vendors had to lower their inventory through
promotions, while others slimmed their product lines
at retailers," [Gartner analyst Mikako] Kitagawa said.
According to Gartner's report, Apple surged into third
place in the U.S. market, up from fifth place a year ago
and even as recently as last quarter, grabbing a 10.7%
share, up significantly from an 8.5% share in the prioryear quarter.
Market growth
 A simple means of forecasting the market growth rate is to
look at historical data into the future. While this method may
provide a first-order estimate, it does not predict important
turning points. A better method is to study market trends
and sales growth in similar products. Such drivers serve as
leading indicators that are more accurate than simply using
past data.
Case study
 http://betanews.com/2009/07/22/apple-has-
91-of-market-for-1-000-pcs-says-npd/
Market trends
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Changes in the market are important because they often are the source
of new opportunities and threats.
For instance does the Kindle presents a possible threat to Apple? Do
they have similar products and similar consumers? Does this effect the
market size for Apple’s ability to sell?
Other examples which effect market trends can economic i.e. people
have less money
Social, more people are shopping online than in shops.
Regulatory or legal i.e. Samsung was banned recently for selling their
phone in a oversees market because Apple said they had infringed their
copyright.
Political conditions i.e. wars in a country can stop people buying goods.
Available technology: After the Japanese disaster their was less
technology, available which caused a shortage in supply see
http://www.reuters.com/article/2011/03/14/idUS217258+14-Mar2011+BW20110314
Market profitability
 While different organizations in a market will have different
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levels of profitability, they are all similar to different market
conditions. Porter devised a useful framework for
evaluating the attractiveness of an industry or market. This
framework, known as Porter five forces analysis, identifies
five factors that influence the market profitability:
Buyer power
Supplier power
Barriers to entry
Threat of substitute products
Rivalry among firms in the industry
from http://www.netmba.com/marketing/market/analysis/
Industry cost structure
Primary activities
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Primary Activities
Primary activities relate directly to the physical creation, sale, maintenance and
support of a product or service. They consist of the following:
Inbound logistics – These are all the processes related to receiving, storing, and
distributing inputs internally. Your supplier relationships are a key factor in
creating value here.
Operations – These are the transformation activities that change inputs into
outputs that are sold to customers. Here, your operational systems create value.
Outbound logistics – These activities deliver your product or service to your
customer. These are things like collection, storage, and distribution systems, and
they may be internal or external to your organization.
Marketing and sales – These are the processes you use to persuade clients to
purchase from you instead of your competitors. The benefits you offer, and how
well you communicate them, are sources of value here.
Service – These are the activities related to maintaining the value of your
product or service to your customers, once it's been purchased.
Secondary or support
activities
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Support Activities
These activities support the primary functions above. In our diagram, the dotted lines show that
each support, or secondary, activity can play a role in each primary activity. For example,
procurement supports operations with certain activities, but it also supports marketing and sales
with other activities.
Procurement (purchasing) – This is what the organization does to get the resources it needs to
operate. This includes finding vendors and negotiating best prices.
Human resource management – This is how well a company recruits, hires, trains, motivates,
rewards, and retains its workers. People are a significant source of value, so businesses can create
a clear advantage with good HR practices.
Technological development – These activities relate to managing and processing information, as
well as protecting a company's knowledge base. Minimizing information technology costs, staying
current with technological advances, and maintaining technical excellence are sources of value
creation.
Infrastructure – These are a company's support systems, and the functions that allow it to
maintain daily operations. Accounting, legal, administrative, and general management are
examples of necessary infrastructure that businesses can use to their advantage.
Companies use these primary and support activities as "building blocks" to create a valuable
product or service.
Apply this model to the
following products
 Coca cola
 Apple products
 Films
Distribution
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Distribution (or "Place") is the fourth traditional element of the
marketing mix. The other three are Product, Price and Promotion.
The Nature of Distribution Channels
Most businesses use third parties or intermediaries to bring their
products to market. They try to forge a "distribution channel" which can
be defined as "all the organisations through which a product must pass
between its point of production and consumption"
Why does a business give the job of selling its products to
intermediaries? After all, using intermediaries means giving up some
control over how products are sold and who they are sold to.
The answer lies in efficiency of distribution costs. Intermediaries are
specialists in selling. They have the contacts, experience and scale of
operation which means that greater sales can be achieved than if the
producing business tried run a sales operation itself.
Case study
 Phones for you
 What sort of phones do they sell, to whom, how
do they market these phones compare a model,
and network with a similar brand from the home
store?
Case studies
 Film distribution companies
Marketing segmentation
 Market segmentation divides the market into consumers
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who have similar needs and wants. For instance, kelloggs’s
own Frosties and market them to children they also own
crunchy nut cornflakes and market these to adults.
Both goods are marketed at to two distinct groups of
persons, both with similar needs, traits, and wants.
Think about the following products what audiences are
they aimed at Apple Ipod, Iphone, Ipod nano,
Headphones: which we have already talked about have
different audiences
Trainers: Nike, Vans or Adidas
Coke, Pepsi or Aldi own brand coke.
Marketing analysis:
Segmentation
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A market segment analysis
is an important business
tool used to create effective
marketing strategies. This
marketing tool requires a
business to split its entire
customer base along a few
identified key variables and
then analyze those
segments to determine the
key factors customers
consider during the
purchasing process. A
market segment analysis
can help companies create
new ways of presenting
their products or services
that make them more
attractive to those specific
market segments
Brand promotion
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Brand promotion is a strategy that is commonly used in marketing in
order to increase customer loyalty, awareness of products, and sales.
Instead of focusing on a specific product or products, a company instead
tries to focus on the promotion of its brand. This strategy has been
proven to be very effective in marketing, and many companies currently
employ it. Typically, companies rely on repetition in advertising in order
to familiarize customers with the brand.
 Companies have used brand promotion for many years, and it is still
successful in today's market. With this strategy, one of the primary
objectives of the company is to increase brand awareness. When
customers become aware of a brand, they are much more likely to give
it a try. Brands that are unknown generally do not perform as well as
commonly known brands.
 Another primary objective of brand promotion is to create customer
loyalty. Studies have shown that customers are very loyal to brands.
Once the habit of purchasing a brand is formed, a consumer will
generally go back to that same brand again and again.
Advertising
 Advertising includes billboard, TV, radio, viral, direct
mail, advertisements are used to promote brands.
They are most often used to encourage people to
buy, or to raise brand awareness, where repetition of
product name tagline or celeb endorsement raises
awareness.
 Adverts are usually paid for which is above the line
advertisements, but they can also be below the line
i.e. not paid for i.e. a star does an interview with a
magazine, which also helps promote their film.
 Can you think of any famous adverts with celebs in
or adverts you like?
Marketing strategy
 Marketing strategy
 http://www.marketingdonut.co.uk/marketi
ng/marketing-strateg
Brand
 What is a brand
 Also see:
http://www.marketingdonut.co.uk/marketing
/marketing-strategy/branding
Public relations as a
function of marketing
What you need to do using this website:
http://www.marketingdonut.co.uk/marketing/pr
What are the function of PR:
1. What is public relations
2. What are the different types of functions of PR: managing the
message, positive publicity, ‘spin’, damage limitation,
organising events, lobbying)
3. Find a definition for each using the internet and the above
website. Then find examples of these in the following fields of
marketing and public relations:
4. media; business; government; public services; charities;
pressure groups; entertainment; sport; celebrities
5. Using your research Friday you will start to write up the
functions of marketing and public relations using these as case
studies.
Marketing methods and
techniques
 You will be able to describe the different
marketing methods and techniques
Marketing methods and
techniques
 The following research methods are carried
out: primary, secondary, qualitative,
quantitative, market research, surveys, focus
groups
 Think about your products how might these
different research methods be used and why?
Marketing techniques and methods
 Understanding your client and their
requirements what are they looking for?
 The key thing with any marketing strategy is
you will need to have a plan, but to also know
what your client wants i.e. do they want to
Increase customer sales or to target a specific
market segment?
SWOT analysis
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Strengths
Weaknesses
Opportunities
Threats
What it is:
http://www.marketingdonut.co.uk/marketing/m
arketing-strategy/swot-analysis
 How to carry one out:
http://www.marketingdonut.co.uk/marketing/m
arketing-strategy/swot-analysis/how-to-do-aswot-analysis
Marketing mix the 4ps
 The marketing mix is often crucial when determining a product or
brand's unique selling point (the unique quality that differentiates a
product from its competitors), and is often linked with the 'four Ps':
 Price: effects how much money you make, but the price of some
products can change and can be used as a marketing strategy i.e reduce
the price to target different customers some products are never
reduced i.e. apple rarely has sales against price is linked to perceived
worth, so by reducing the price are we reducing the worth. See:
http://www.marketingdonut.co.uk/marketing/marketingstrategy/pricing
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Promotion: Any method to promote or communicate about a product,
word of mouth, advertising, PR, sponsorship or bog off deals
 Place: linked to distribution this is where the product is sold or in some
cases not sold.
 Product: How the product (or service) should look and function to meet
the needs of the target audience(s). This includes considerations of
packaging, branding and how it is put together.
Profiling identify your
market?
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Profiling is a bit like what the police do to solve a case, you profile your target audience
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Your first job when profiling a target market is to be able to identify precisely who your audience
is. Can you accurately describe the characteristics of your ideal customers? Which clients currently
spend the most with you? Why do they do this? If you don't know the answers, you need to find
out.
You'll probably already have a good idea about the groups of people or types of businesses that
you think you can sell your service to. For individual customers this might be people of a certain
age, gender, socio-economic status, occupation, or a group with common or special interests such
as sports or hobbies. For business customers these might be located in a specific area, or in a
particular sector, or could have similarities in terms of the customer groups they sell to.
Your objective should be to concentrate your marketing on these groups of people, businesses, or
existing customers who are most likely to buy your product or service. Doing this in the most
profitable way takes experience, but once you have identified this target group of people or
businesses, you'll have completed the first step in profiling your market and now have your list of
target prospects-your ideal customers. I.e who are they, where do they hang out, where do they
shop, do they prefer to shop online. Markets can sometimes collect this data from data
organisations, and then test their assumptions with a focus group.
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Catching their attention
 You will need a range of marketing materials
i.e. print, video, audio, interactive, or ones
that suit your profile target audience
 You will need advertising; sponsorship;
endorsements; merchandising again which
will suit your profile demographics and
psychographics.
Principle methods and
techniques used in PR
Public relations: What
techniques you could use?
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Press statements
Press releases
Electronic media packs
Briefings
Press conferences i.e. football clubs or celebs
Handouts or interviews i.e for new products i.e
cars or games.
 Film and picture opportunities i.e. film premiers
 Think of an examples for each one would this
suit your type of audience.
Identifying the issues for
marketing solutions.
 This could come down to your SWOT analysis
what is wrong with your product are their
threats or weaknesses or do you need to
increase your customer based the issue could
include:
 Quality, image; price; value; market;
competition; strengths; weaknesses;
opportunities and threats