The 5 Roles of Marketing
Carrying out market research in order to find out what customers want to buy.
deciding on the right place to sell the products
deciding on the best methods of promotion for products and making customers aware of the products
deciding on the right price to charge for the products.
developing and designing a product which meets customers’ needs and wants DONE
Definition of a market segment - page 3
a group of buyers with similar characteristics.DONE
How to segment the market
Age
Geographic Location
on billboards in Scottish towns and cities.
Income
Religious or Cultural
Beliefs
Occupation DONE
Benefits of target marketing/reasons
Less time consuming to carry out market research.
Product can be designed to meet specific needs of target market.
Advertising and promotions can be designed for target market.
Prices can be more accurately set to reflect the particular target market.DONE
Ensures a suitable place is chosen where target market will buy the product.
Advantages field research
Information is gathered specific to your purpose.
Information is up-to-date.DONE
Disadvantages of Field Research
It is more expensive to gather compared to desk
research.
It is more time consuming to gather compared to
desk research.
People may not always give truthful answers in
response to questions.DONE
Definition of Field Research
This involves finding out information first hand
(primary information) directly from the
public/consumer.DONE
Definition of Desk Research
This uses secondary information which has already
been gathered for another purpose, either from inside
or outside the business.DONE
Advantages of Desk Research
It is cheaper to access existing information rather
than having to collect information from scratch.
It is easier to obtain by looking in a newspaper or
on a website, as the research has already been
carried out.
Decisions can be made quickly as the information
already exists.DONE
Disadvantages of Desk Research
Information may be out of date as it may have been
collected a long time ago and so may not be
relevant.
Information is available to competitors making it
harder to find a competitive edge.
The information may not be as useful as the
research has been carried out for a different
purpose.
Description of Field Research Methods
Personal
interview
A face-to-face discussion between a trained interviewer
and a respondent which can take place in the street or
at home.
Telephone
survey
People are contacted by telephone and asked to
answer a range of questions.
Postal survey
A list of questions is sent to people through the post.
They will complete the survey and send it back to the
business.
Online survey
People answer a number of questions that are
displayed on a website. Respondents may have to click
an appropriate answer and/or type in comments.
Advantages of Field Research Methods
Personal
interview
Allows two-way
communication so any
points can be clarified.
The researcher can
encourage the respondent
to answer certain
questions.
Body language and facial
expression can be
observed.
Telephone
survey
Information is obtained
immediately.
Any points can be clarified
by the researcher.
Postal survey
Cost effective way of
sending a survey to a large
number of people over a
wide geographic area.
People can complete their
survey at their own pace
when it suits them.
Online survey
A link to a website can be
sent to a large number of
people all over the world.
Computer software can
automatically collate and
display results in real time.
Disadvantages of Field Research Methods
Personal
interview
It is a costly method of research as
interviewers need to be trained.
It’s very time consuming as only one
respondent can be interviewed at any
one time.
Telephone
survey
Many people will not want to speak
to a researcher over the phone and
so many calls will need to be made to
get a large number of responses.
Postal survey
The response rate may be very low.
There is no opportunity for the
respondent to clarify anything they
don’t understand.
Online survey
Relies on respondents having access
to the Internet.
No personal contact with business to
clarify any misunderstandings.
Description of 4 Ps
Product This is the good or service the business provides to its
customers.
Price This is how much a business charges for its
products/services.
Place: This is where (location) and how (method of
distribution) the product is sold by the business.
Promotion: This is how customers are made aware of a
product/service and are persuaded to purchase it.
Description of each Product Development stage
G
Generate the idea – coming up with ideas following market
research.
A
Analyse the idea – considering the different options and picking
the best one.
P
Produce a prototype – making a model/early version of your
product.
T
Test the product – carry out safety tests and also carry out test
marketing with customers for feedback.
A Alter the product – make necessary changes following testing.
P Produce the product – start production of the product.
Description of Branding
A brand is a logo, name or symbol that is given to a product that
makes it instantly recognisable.
Advantages of Branding
Higher prices can be charged for branded
products.
Brands generate “brand loyalty” and mean
greater sales.
Brands are perceived to be of a higher quality.
Brands are instantly recognisable.
Disadvantages of Branding
If a product within the brand develops a poor
reputation it can damage the whole brand name.
Establishing a brand is time consuming, lengthy
and expensive process.
Own Brand Description
These are products which are sold under the name of a supermarket or other
retailer, rather than under the name of the manufacturing firm.
Own Brand Features
Own brands are often cheaper than branded products.
Own brands are often seen as being of inferior quality.
Own brands appeal to the sector of the market to whom price is important.
Packaging Advantages
Can protect the product during
transportation/delivery.
Can increase the shelf life of the product
(particularly for food items).
Can make the product attractive and encourage
customers to buy.
Packaging Disadvantages
Distinctive packaging could be copied by own
brands.
Pressure to use environmentally friendly
packaging may lead to higher costs.
If distinctive packaging is littered it could create a
negative reputation (eg Starbucks cups on the
street).
Product Life Cycle description
This refers to the length of time a business expects to sell a product. This will
last for many years for successful products but potentially only weeks for
others.
Product Life Cycle STAGES
Research and
Development
Money is invested into developing the product,
carrying out research and making a prototype
Introduction
The product is launched onto the market.
The product is heavily advertised to inform customers.
Sales will be low at this stage with little to no profit.
Growth
The product is becoming more well-known and
popular.
Advertising continues but at a lower rate than before.
Sales are rapidly increasing. Profit is beginning to be
made.
The product is becoming more well-known and
popular.
Advertising continues but at a lower rate than before.
Sales are rapidly increasing. Profit is beginning to be
made.
