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BUSINESS DECISION AREAS. The Marketing Concept The Marketing Mix Market Research. Marketing. Marketing. 1.The Marketing Concept 2.The Marketing Mix 3.Market Research. B108/078 – BDA – Marketing. 1. The Marketing Concept.

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Business decision areas

BUSINESS DECISION AREAS

The Marketing Concept

The Marketing Mix

Market Research

Marketing


Marketing

Marketing

1.The Marketing Concept

2.The Marketing Mix

3.Market Research

B108/078 – BDA – Marketing


Business decision areas

1. The Marketing Concept

Marketing is involved in finding out what consumers need and want in order to produce the right product at the right time.

Marketing is viewed as essential in order to reduce the risk of business failure, particularly in a competitive environment.

B108/078 – BDA – Marketing Concept


Business decision areas

1. The Marketing Concept - continued

Marketing involves:

  • identifying consumer needs and wants

  • anticipating future consumer needs and wants

  • satisfying consumer needs and wants

  • to inform or remind consumers about the product

  • to increase or maintain market share

B108/078 – BDA – Marketing Concept


Business decision areas

1. The Marketing Concept - continued

The Marketing function is specifically involved with:

  • Product design, research and development;

  • Pricing – high or low price strategy;

  • Place – how the product/service gets to the customer;

  • Promotions including advertising, to inform and persuade;

  • Market research ie to find out what markets want now and in the future;

  • Public relations and publicity.

B108/078 – BDA – Marketing Concept


Business decision areas

1. The Marketing Concept - continued

Market share

This refers to the % of the total potential market that the business attracts.

A high market share can create brand loyalty and allow a business to have greater flexibility in marketing strategy.

A high market share can help to secure the survival and market growth of the business.

B108/078 – BDA – Marketing Concept


Business decision areas

1. The Marketing Concept - continued

Market led and product led organisations

  • Market led organisations establish a market and tailor their product and service to suit the needs and wants of that market.

Typical features include;

  • highly competitive markets

  • lots of similar products on the market

  • a high risk of failure

B108/078 – BDA – Marketing Concept


Business decision areas

1. The Marketing Concept - continued

  • Product led organisations provide a product and/or a service in the hope that a market exists.

Typical features include;

  • low competition

  • a unique product with few alternatives

  • strong advertising in support of the product’s USP (Unique Selling Point)

B108/078 – BDA – Marketing Concept


Business decision areas

2. The Marketing Mix

The Marketing Mix and the 4Ps

Product – Price – Place – Promotion.

A business has to ‘mix’ these 4Ps in order to provide a USP (Unique Selling Point) for its product/products

The ‘mix’ will change over time in order to make sure that the product/service continues to be successful.

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

  • PRODUCT/SERVICE

The product or service itself. It can be the actual product – design/colour as well as offering guarantees and after sales service.

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

The product life-cycle

This shows the different phases that a product will pass through over time.

Some products will take years to pass through the stages and some may take only weeks.

5

4

6

3

sales

2

1

B108/078 – BDA – The Marketing Mix

time


Business decision areas

Extended life

5

4

6

3

sales

2

1

time

2. The Marketing Mix - continued

When a product reaches saturation, the business may adopt one of the following strategies in order to extend the life of the product.

  • Improve the product/ packaging.

  • Change the price.

  • Alter the channel of distribution.

  • Change the promotion and advertising.

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

  • PRICE

The amount that a consumer is prepared to pay for a good or a service. The price can be high/low or market.

Pricing strategies

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

  • PLACE

The place where the product or service will be available for the customer to buy – eg retail outlet or direct through the Internet.

  • The channel of distribution will depend upon:

  • the product being sold.

  • the size of the market.

  • the finance available.

  • the desired image for the product.

  • any legal restrictions.

  • the reliability of the ‘chain’.

MANUFACTURER

WHOLESALER

RETAILER

CONSUMER

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

  • PROMOTION

The ways that a business can use to help attract custom and sell their products and services (this includes advertising).

Promotion

Reminds consumers of a products existence

Persuades consumers to buy

Informs consumers about a product

B108/078 – BDA – The Marketing Mix


Business decision areas

2. The Marketing Mix - continued

Into the pipeline Promotions

Out of the pipeline Promotions

Manufacturers to retailers

Retailers to consumers

  • point of sale displays

  • dealer loaders

  • sale or return

  • dealer competitions

  • dealer bonuses

  • credit facilities

  • free samples

  • credit facilities

  • demonstrations

  • competitions

  • BOGOFs

  • bonus packs

  • free offers

  • coupons/vouchers

B108/078 – BDA – The Marketing Mix


Business decision areas

3. Market Research

Businesses carry out Market Research so that they can:

  • Identify consumer demands

  • find out how they view existing products.

  • find out what their wants are for future products.

This will make sure that the business is satisfying their market currently.

This will make sure that the business will satisfy their market in the future.

Market research can also help the business to discover new markets for their products.

B108/078 – BDA – Marketing Research


Business decision areas

3. Market Research - continued

Why is market research important?

  • It can help to indicate the size of the market available.

  • It can help to forecast future market growth.

  • It can help to provide information to provide the best marketing mix (4Ps).

  • It can help to keep ahead of competition.

  • It can help the firm to become ‘Market Led’ and therefore improve chances of success.

  • It can help to identify suitable target markets.

B108/078 – BDA – Marketing Research


Business decision areas

3. Market Research - continued

Market research can be:

Primary research (field research)

First hand research obtained for a specific purpose by the business.

  • Examples include:

  • test marketing

  • consumer panels

  • interviews

  • surveys

  • observation

B108/078 – BDA – Marketing Research


Business decision areas

3. Market Research - continued

Market research can be:

Secondary research (desk research)

Second hand information which has been researched by someone else and then used by the business.

  • Examples include:

  • sales records

  • on-line databases

  • newspaper articles and periodicals

  • government reports and statistics

B108/078 – BDA – Marketing Research


Business decision areas

3. Market Research - continued

Advantages and Disadvantages of Primary and Secondary research.

B108/078 – BDA – Marketing Research


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