Transcript Product Price Promotion Place

Marketing - Unit 1.3
SG Business Management
What is marketing?
Marketing is the process of learning about
your customers and competitors, so that
you can provide the right products at the
right price in the right place, promoted in
the right way to achieve your business
objectives.
Marketing involves the following
range of activities:
Knowing about the product or service and
its market
Knowing what to produce
Knowing how much to charge
Knowing how to persuade people to buy it
Knowing where to sell it
Knowing how to get the best mix of these
Knowing how to deal with customers
The Marketing Mix:
Product Price Promotion Place -
What is market research?
Market research gathers information about
consumers, competitors and distributors
wihtin a firm’s target market. It is a way of
identifying consumers’ buying habits and
attitudes to current and future products.
Market research can be numerical (such
as what proportion of 16-24 year olds by
The Sun every day?) or psychological
(why do they buy The Sun).
How is market research carried
out?
The following research techniques are
commonly used:
- Desk Research
- Field Research
Desk Research
Desk research involves the use of existing
information from:
- government statistics, for example from the
Census which is carried out every 10 years:
Newspapers
Magazines
Published market research information – reports
in various journals showing trends in a range of
markets for different products.
When should Desk Research be
used?
When market information already exists.
When it is cheaper to access existing
information rather than generate new
information.
When it is easier to access – saves time.
Field Research
Field Research can be carried out through:
- the use of questionnaires – set questions
are asked, face-to-face/by telephone/by
post.
Test Marketing – try out the product on a
small section of the market
Consumer panel – a group of people are
given a product and asked to comment on
it in detail.
Place
Product
The Marketing Mix – 4 Ps
Promotion
Price
Product
It must be of the right quality to appeal to
possible customers.
Price
The price must be set at the correct level
If the price is too high customers may not
buy the product
If the price is too low customers may get
the wrong idea – eg, poor quality
The price should be determined by the
economic concept of demand and supply
Promotion
The best method(s) of advertising – ie
raising awareness – should be selected
and may include:
• newspapers
• magazines
• radio
• endorsements
• buses
• special promotions
• billboards
• sponsorship
• shop windows
Place
The product must be available for sale at the
right place at the right time.
This must be the kind of place where the kind of
people for whom the product or service is
designed are likely to shop. Possible options for
the correct ‘place’ would include:
Wholesale outlet – Makro
Retail outlet – Woolworths
Mail order – Kays Catalogue