Marketing Unit 4 HL/SL 4.1-4.4

Marketing Unit 4 HL/SL 4.1-4.4

1. The role of Marketing 4.1

   • Marketing
     • The Management process of getting the right product to the right customer at the right price to the right place and time
   • Marketing of Goods
     • The use of the 4 p's of product, price, place and promotion in the marketing mix
   • Marketing of Services
     • The use of the 7 P's of product, place, price, promotion, people, process, and physical evidence in the marketing mix
   • Goods
     • Tangible Product
     • Can be returned
     • Can be stored and consumed later
     • There is ownership of the product
     • Easier to compare between products
   • Services
     • Are Intangible
     • Cannot be taken back
     • Cannot be stored and need to be consumed immediately
     • There is no ownership of the product
     • Difficult to compare between products
   • Product Orientation
     • A Business approach that focuses on making the product first before attempting to sell it
   • Marketing Orientation
     • A Business approach of first establishing consumer demand through marketing research before producing and selling a product
   • Commercial Marketing
     • Marketing activities that determine consumers needs and wants before using appropriate strategies to market the product
   • Social Marketing
     • A marketing approach aimed at influencing a positive change in individual behaviour and improvements in societal well-being
   • Social Media Marketing
     • The use of the internet through social networking websites to market a firm's product or service
   • Market Share
     • Market Share (%) = (Firms Sales / Total sales in the market) X 100
     • The percentage of one firm's share of the total sales in the market
   • Market Growth
     • The percentage change in the total market size over a period of time
   • Market Size
     • The total sales of all firm's in a market
   • Market Leader
     • A firm with the highest market share in a given market

2. Marketing Planning (4 P's) (4.2)

   • Elements of a Marketing Plan
     • Marketing Objectives
     • Key Strategic Plans
     • Detailed Marketing Actions
     • The Marketing Budget
   • The Process of formulating Marketing Objectives, and devising appropriate marketing strategies to meet those objectives
   • Marketing Mix
     • The key Elements of a marketing strategy that ensure the sucessfull marketing of a product
     • 4 P's
       • Price
       • Product
       • Place
       • Promotion
   • Market Segment, Target and Profile
     • Market Segment
       • A sub-group of consumers with similar characteristics in a given market
     • Market Segmentation
       • The process of dividing the market into distinct groups of consumers so as to meet their desired needs and wants
       • Demographic Segmentation
         • Age
         • Gender
         • Religion
         • Family Characteristics
         • Ethic Grouping
       • Geographic Segmentation
         • Regions in a country where consumers reside
         • Climatic Conditions
       • Psychographic Segmentation
         • Social and Economic Status
         • Values
     • Targeting
       • The process of marketing to a specific market segment
       • Target Market
         • A group of consumers with common needs or wants that a Business decides to serve or sell too
       • Niche Market
         • A narrow, smaller or more specific market segment
       • Mass Market
         • A large or broad market that ignores specific market segments
       • Consumers Profiles
         • The Characteristics of consumers of a particular products in different markets based on their gender, age, and income levels among other characteristics
   • Positioning
     • Product position Map/ Perception Map
       • A visual representation of how consumers perceive a product in relation to other competing products
   • Unique Selling Point/ Position (USP)
     • A product's feature that differentiates it from other competing products in the market

3. Sales Forecasting (HL) (4.3)

   • The Process of predicting the future sales of a firm
   • Time Series Analysis
     • A quantitative sales forecasting method that predicts future sale levels from past sales data
     • The Trend
       • A visible pattern noted after inputting the past sales data
     • Seasonal Fluctuations
       • Are changes in demand because of the varying seasons in the year.
     • Cyclical Fluctuations
       • Variations Tied to the Business cycle in an economy
     • Random Fluctuations
       • Notable changes or fluctuations that stand out from a given trend
   • Moving Averages
     • Sales forecasting method that identifies and emphasizes the direction of a trend
     • Exploration
       • An extension of a trend line to predict future sales
     • Variation
       • The difference between actual sales and trend values

4. Market Research (4.4)

   • The process of collecting, analysing, and reporting data related to a particular market
   • Purpose of Market Research
     • To Identify Customers Needs and Wants
     • To Assist a Business in predicting what is likely to happen in the future
     • To reduce the risk of product failure
     • To measure the effectiveness of a marketing strategy
     • To provide current or the latest information regarding activity in the market
   • Primary Research
     • The collection of first-hand information from the Market
     • Surveys
     • Interviews
     • Focus Groups
     • Observations
   • Secondary Research
     • The collection of second-hand information from the market
     • Media Articles
     • Government Publications
     • Academic Journals
     • Market Analyses
   • Qualitative Research
     • The collection of data about opinions, attitudes or beliefs
     • Information is open to a high degree of interpretation
     • It is Subjective
     • Key research question would include "Why?"
     • The researcher is part of the process
     • It provides with multiple realities
   • Quantitative Research
     • Involves the collection of numerical data or data that can be measured
     • Information is open to less interpretation
     • It is Objective
     • Key Research questions would include "How Many?"
     • The researcher is separate
     • it provides one reality
   • Sample
     • A group of people selected to represent the population or target market under research
   • Sampling
     • The process of selecting an appropriate sample
     • Quota Sampling
       • Segmenting a given population into a number of groups that share a certain characteristics
     • Random Sampling
       • Every member in the population has an equal chance of being selected as part of the sample
     • Stratified Sampling
       • The target population is made up of many different groups who are subdivided into segments or strata that share similar characteristics.
     • Cluster Sampling
       • Used when the population is geographically dispersed.
     • Snowballing
       • Sampling that involves surveying the first group or individual who then suggests other groups or individuals who could participate
     • Convenience Sampling
       • Technique where groups are selected based on their easy access and proximity to the researcher.