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 Market size (current and future) Market growth rate Market profitability Industry cost structure Distribution channels Market trends Key success factors 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.

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

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

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 prior-year 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

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-Mar-2011+BW20110314

Market profitability

While different organizations in a market will have different 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

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 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

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 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

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

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/marketing/marketing-strateg

Brand

What is a brand Also see:

http://www.marketingdonut.co.uk/marketing/marketing-strategy/branding

Public relations as a function of marketingWhat 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?

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?

Marketing techniques and methods

SWOT analysis

Strengths Weaknesses Opportunities Threats What it is:

http://www.marketingdonut.co.uk/marketing/marketing-strategy/swot-analysis

How to carry one out: http://www.marketingdonut.co.uk/marketing/marketing-strategy/swot-analysis/how-to-do-a-swot-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/marketing-strategy/pricing

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? Profiling is a bit like what the police do to solve a case, you profile your target audience

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.

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? 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