Transcript Marketing-strategyx

Theme 1: Marketing & People
This theme enables students to understand how businesses identify opportunities and to explore how
businesses focus on developing a competitive advantage through interacting with customers. Students
develop an understanding of how businesses need to adapt their marketing to operate in a dynamic
business environment. This theme also considers people, exploring how businesses recruit, train,
organise and motivate employees, as well as the role of enterprising individuals and leaders.
1.3 Marketing mix and strategy
Subject content
1.3.5 Marketing strategy
What students
need to learn:
a) The product life cycle
b) Extension strategies:
• product
• promotion
c) Boston Matrix and the product portfolio
d) Marketing strategies appropriate for different types of
market:
• mass markets
• niche markets
• business to business (B2B) and business to
• consumer (B2C) marketing
e) Consumer behaviour – how businesses develop
customer loyalty
Marketing strategy
What is it?
Can you find an example?
Types of markets
• Niche marketing
• Niche marketing is when a firm targets a small
subsection or previously unexploited gap in a
larger market
Should chocolate
makers be
targeting a niche
or a mass
market?
• Niche marketing may give a business first mover
advantage and allow them to charge a premium
price
Mass marketing
• When a firm targets the whole of a market rather
than a particular segment
• Mass marketing can give a business a high volume of
sales but often at a low price
Types of markets
• Industrial markets are where businesses are
selling to other businesses; business to
business (B2B)
• The technical specification of the product
and service provided by as sales person or
account manager is likely to be more
important than the brand
• Consumer markets are where
businesses are selling to the public,
business to consumer (B2C)
• The product and the price may be
seen as of equal importance to the
promotion but more important than
place e.g. does it matter what
channels the product went through
to reach the consumer
Consumer behaviour
Business will want to understand consumer behaviour and build
customer loyalty
This can be achieved using a range of methods including:
Customer service
People are the employees involved in dealing with customers before,
during and after a sale
Consumer behaviour
 Physical environment
 the design and features of the actual place where a transaction
takes place
 Aspects of the physical environment might include:
Do loyalty
cards work?
How many
loyalty cards
do you have?
Are you loyal?
Cleanliness
Design e.g. ease of movement around the premises or
ability to find what you are looking for
Facilities
Ambience
 Loyalty schemes
 Reward cards e.g. collect points, collect stamps for a free product
 Saver schemes