Transcript 3.1 - 3.2 Intro marketing_Market Research - AIS-iGCSE

Thought for the day:
“Business has
only two functions
- marketing and
innovation.”
‘
3.1 Role of Marketing
(3.1.1)
Market Segmentation
(3.1.4)
Mass & Niche Marketing
(3.1.5)
&
Market Research
(3.1.2)
Pg 123 - 133
Homework
YEAR
Year 9 iGCSE
SUBJECT Business Studies
TOPICS Business Activity to achieve objectives:
Section Two: 3.1 Marketing - 20% Assessment Three
TASK
TYPE
CRITERI
A
DUE
DATE
Creating a Business Plan



Knowledge and Understanding (AO1)
Skills (AO2 & AO3)
Communication (AO4)
Section Two: Marketing - 19th August 2013
To come:
Section Three: Marketing – 7th of October 2013
Target
Learning Objective

•
•
•

•
•
•
•
•

•
•
•
Describe the role of marketing.
Knowledge and understanding of how market
research can be carried out
Understand the difference and significance of mass
and niche markets in terms of size and customer
needs
Understand the concept of a market orientated
business
Show awareness of the use of market research
information to a Business
Understand how a business carries out market
research; limitations of market research
Knowledge of the difference between primary and
secondary research, advantages and disadvantages
of each
Understand the factors that influence the accuracy
of market Research
Appreciate the need for market research
Appreciation of the reasons why market research
data might be inaccurate or of limited use
Appreciate the difference between mass marketing
Who?
ALL
D-C
(AO1)
MOST
C-B
(AO2 &
3)
SOME
A
(A04)
Keywords
Consumers
Customers
Marketorientated
Market segment
Mass market
Niche market
Productorientated
Bias
Closed questions
Desk research
Market research
Multiplequestions
Open questions
Primary research
Questionnaire
Secondary
resear4ch
Starter:
What is the role of marketing?
Activity: Identify some marketing strategies of
businesses using newspapers, magazines,
students’ experiences and so on.
Marketing Market orientated?
Product oriented?
The Market – can be identified in
serval ways… Market for individual
goods & services
Consumer markets
for products being
bought by individual
consumers
Niche markets
consisting of smaller
number of consumers
for a more specialised
product
Commercial markets
for goods and
services bought by
business and other
organisations
Mass markets – large
number of consumers
Learning Objective:
3.1.1 Role of marketing
Describe the role of marketing
Understand the role of marketing in a business
Marketing
• The process of getting
customers interested in
the product….
Through…
• Research of customer
needs, promotion,
selling and distribution
of products.
Market Size
Market size represents all the sales
of companies in a market.
-Volume
-Value
NB: helps to think about the size of the market
as it helps you tell whether the market is
growing or shrinking (and how fast) as
well as being the basis for calculating
market share data.
Market Growth
-Measures how fast a given market is
expanding.
Market Share
-measures what proportion of the total market’s
sales is held by one organisation.
ACTIVITY
Pg 125
Business in context
Challenge
Challenge:
In groups
Group One– come up with an example of Niche marketing
(without telling us what niche marketing is!)
Group Two– come up with a story about market Segment
(without telling us what it is!)
Group Three– come up with a story about market orientation
(without telling us what it is!)
Group Four– come up with a story about product orientation
(without telling us what it is!)
Pg 124
Niche Marketing
Learning objective:
•Appreciate the difference between mass marketing
and niche marketing
•Understand the difference and significance of mass
and niche markets in terms of size and customer
needs
Niche vs Mass Marketing
play
Niche Marketing - What is it?
What is the advantage of supplying a niche market?
Pg 124
Market Segmentation
• 3.1.4 Market segmentation (purpose and
methods)
• Understand how and why market segmentation is
carried out
• Show how markets can be segmented according to
age, socioeconomic groupings, location or gender
• Demonstrate an understanding of why such
segmentation can be of use to a business
• Select and justify a method of segmentation
appropriate to given circumstances
Market segmentation
Define: A market segment is a sub-set of a market made up of people or
organizations with one or more characteristics that cause them to demand
similar product and/or services based on qualities of those products such as
price or function.
Play – industry
Play – teaching clip
Hand out notes:
http://www.bized.co.uk/educators/level2/competition/activity/customers14.htm
Market Segmentation
What is it?
How can markets be segmented?
What is the advantage for a business?
Pg 124
Extension Activity: 21.1
TIP: ‘When thinking about segmentation, who you
are selling to will have a big influence on the price
and the product, and how and where it is sold’
Market orientation
Product Orientation
• http://www.youtube.com/watch?v=ntX9xeDg
Do8
• Pg 124
What is marketing?
•
Marketing is about responding to consumers' needs. It is important to find out what these needs are
before launching a new product.
•
A business conducts market research to help identify gaps in the market and business opportunities.
What is a market?
•
A shop is an example of a market
•
Businesses sell to customers in markets.
•
A market is any place where buyers and sellers meet to trade products - it could be a high street shop or a
web site.
•
Any business in a marketplace is likely to be in competition with other firms offering similar products.
•
Successful products are the ones which meet customer needs better than rival offerings.
•
Markets are dynamic. This means that they are always changing. A business must be aware of market
trends and evolving customer requirements caused by new fashions or changing economic conditions.
What is marketing?
- Pg 125
- What is it?
- What activities does it include?
Extension: pg 126 'Exemplar question'
MARKET RESEARCH
Learning Objective:
3.1.2 Market Research (primary and secondary)
Appreciate the need for market research
Understand the concept of a market orientated business
Show awareness of the use of market research information to a business
Understand how a business carries out market research; limitations of market
research
Knowledge of the difference between primary and secondary research, advantages
and disadvantages of each
Knowledge and understanding of how market research can be carried out
Understand the factors that influence the accuracy of market research
Appreciation of the reasons why market research data might be inaccurate or of
limited use
Activity
• Pg 128
• Business in
context
Level 1,2,3,4
Market research
•
•
•
•
•
•
•
Level 1,2,3,4
•
There is far more to marketing than selling or advertising. Put
simply, marketing is about identifying and satisfying customer
needs.
The first step is to gather information about customers needs,
competitors and market trends.
An entrepreneur can use the results of market research to produce
competitive products.
New magazines will hope to retain customers after their launch
The first step for a new business or product is to attract trial
purchases.
A new magazine may run special offers to get customers to try the
first issue, hoping that repeat sales are generated.
The magazine will soon close if customers fail to buy future issues.
The aim of a special offer scheme is to convert trial purchases into
repeat sales.
Market research involves gathering data about customers,
competitors and market trends.
Carrying out market research
Bullet point main points:
What do you need to know?
How will you find it out?
-pg 129
Collecting market research
•
•
There are two main methods of collecting information:
Primary research provides new data for a specific purpose
•
Primary research (field research) involves gathering new data that has not been
collected before. For example, surveys using questionnaires or interviews with
groups of people in a focus group.
•
Secondary research (desk research) involves gathering existing data that has
already been produced. For example, researching the internet, newspapers and
company reports.
Collecting market research
•
•
•
•
Factual information is called quantitative data. Information collected about
opinions and views is called qualitative data.
Accurate market research helps to reduce the risk of launching new or improved
products.
Some businesses opt out of field research and rely instead on the know-how and
instincts of the entrepreneur to ‘guess’ customer requirements.
They do this because market research costs time and money. Existing business can
make use of direct customer contact to help them identify changing fashion and
market trends.
Activity
In pairs
Discuss
Note
What is primary research?
.
What methods are used?
Note the main types and their advantages
and disadvantages
(teacher prep – grid jumbled up and
students stick in book)
DISADVATAGES OF Primary (pg 132)
Activity
In pairs
Discuss
Note
What is Secondary research?
.
What methods are used?
DISADVATAGES OF secondary (pg 132)
Recap
Target
Learning Objective

•
•
Describe the role of marketing.
Knowledge and understanding of how market
research can be carried out
Who?
ALL
D-C
(AO1)

•
•
•
•
•

•
•
Understand the concept of a market orientated
business
Show awareness of the use of market research
information to a Business
Understand how a business carries out market
research; limitations of market research
Knowledge of the difference between primary and
secondary research, advantages and disadvantages
of each
Understand the factors that influence the accuracy
of market Research
Appreciate the need for market research
Appreciation of the reasons why market research
data might be inaccurate or of limited use
MOST
C-B
(AO2 &
3)
SOME
A
(A04)
Keywords
Consumers
Customers
Marketorientated
Market segment
Mass market
Niche market
Productorientated
Bias
Closed questions
Desk research
Market research
Multiplequestions
Open questions
Primary research
Questionnaire
Secondary
resear4ch
Plenary
Level achieved_____
What do you now know as a
result of today’s lesson?
What are your areas for improvement?
What are you going to do about this?