Transcript BTEC-Business-U3-A1

Unit 3- Assignment 1
P1, P2, M1, D1
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The purpose of marketing is to identify the needs and wants
of the customers and then work towards meeting these
needs.
This is supported by the 4P’s
 Price
 Place
 Product
 Promotion
Marketing within a company will
follow a specific concept:
 The sales concept
 The marketing concept
 The production concept
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The production concept concentrates on production
and distribution economies.
This in turn is based on the notion that customers
will choose lower priced products that are readily
available. This perhaps applies to builders when they
are buying concrete.
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The selling concept is based on the notion that
customers need to be persuaded to buy through
aggressive selling and promotion.
There are regular reports in the news about gas and
electricity companies whose sales people have used
selling tactics with these characteristics.
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The marketing concept is based on the idea that
organisations can best meet their objectives by
concentrating on customers needs and satisfying
those needs better than competitors.
Organisations do not always adopt the marketing
concept in the beginning but finds they evolve
towards the concept as they seek to survive and
remain profitable in the long term.
This puts the customer at the centre of the decisions
made, a business that follows this concept focuses
on the products that customers will need and use.
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As well as sector objectives, there are also
marketing objectives and these are different to a
business objectives;
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Market Leadership
Brand Awareness
Perceptions of customers or users
Marketing objectives should always support a
business’ objectives.
Organisational Objectives; private (survival and
growth) public and voluntary (service provision,
growth of provision, meeting quality standards)
This is where a
business develops a
new product to an
existing market.
This is where you enter
an existing market with
an existing product.
E.g. Launching a new
computer game- the
gaming market already Produc
exists as do computer t/
game products.
Present
New
Market
Present Market
Penetration-
This is where a
New
company introduces
an existing product
to a new market.
E.g. Introducing the
Wii to the over 60’s
Product
Development
E.g. Selling
accessories to a
computer game- the
Wii Fit to an existing
gaming market
Market
Diversification
Development
This is where a business invents
a new product to a new market.
E.g. When the Wii was
introduced.
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Branding- Branding incorporates a brand name, slogan and logo. Sometimes a brand
can be trademarked to stop anyone copying them. Branding can influence customers to
buy new or different products. For example if you buy Heinz beans and are brand loyal,
you will also buy Heinz Spaghetti. As soon as a brand is strong they can utilise this and
charge higher prices/ launch new products in new markets
Brand building and positioning- A business needs to decide upon their brand values
and the message they wish to convey. This can be done through;
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Consistent styles in promotional materials
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Specific fonts, wording, images and layout
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Training staff to present a specific image.
Brand extension -As soon as a business has developed a brand they may wish to extend
it, this could be through developing new products or entering new markets. Brand
extension is a cost effective way of developing new products. Consider the Virgin Brand.
Relationship Marketing -This is concerned with focusing on the long term value of a
customer. This includes creating relationships, identifying valuable customers and
maintaining these relationships. Relationship Marketing can be used by businesses such
as banks to encourage customers to use more of their services. Relationship Marketing
is the opposite to transactional marketing which solely focuses on making a sale.
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You will be completing P1 and M1 through writing a report. To
meet this criteria your work must reflect a business report format.
Introduction- Define marketing, introduce the two companies and
products you are investigating
Describe the 4P’s of marketing, and the 4P’S for your companies
Describe the 3 different marketing concepts and identify the
concepts that the businesses use.
Describe the range of marketing objectives and how these support
the organisational objectives then explain which marketing
objectives are relevant to your companies
Describe the methods of growth and survival strategies that each
business use for the two chosen products.
Explain where your business fits into the Ansoffs matrix.
Conclusion – Compare the techniques that are used in your
organisations what are the similarities and differences in the two
organisations
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Identify the similarities and differences in the
techniques that are used by the two different
businesses.
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This should include a comparison of :
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The pricing strategies used
The methods of promotion used
The types of products sold
The marketing concepts they use
Where they fit into the Ansoffs matrix
The survival strategies they use.
You should state how both companies are similar and
different and reasons for this. To extend your work
research advantages and disadvantages of the methods
used. AND USE EXAMPLES
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Choose one of your organisations.
Evaluate HOW EFFECTIVE they are at each concept or
principle.
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This should include:
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The pricing strategies used
The methods of promotion used
The types of products sold
The marketing concepts they use
Where they fit into the Ansoffs matrix
The survival strategies they use.
Consider in detail the advantages and disadvantages that exist in
the marketing techniques the business uses.
Write a conclusion which makes judgements about how good
the company is and how it affects other sections of the business.