BTEC Business Level 3 Unit 3 Assignment 1

BTEC Business Level 3 Unit 3 - Assignment 1 P 1, P 2, M 1, D 1

Marketing � � The purpose of marketing is to identify the needs and wants of the customers and then work towards meeting these needs. This is supported by the 4 P’s � Price � Place � Product � Promotion

The role of marketing Marketing within a company will follow a specific concept: �The sales concept �The marketing concept �The production concept

Production Concept � � The production concept concentrates on production and distribution economies. This in turn is based on the notion that customers will choose lower priced products that are readily available. This perhaps applies to builders when they are buying concrete.

Sales Concept � � The selling concept is based on the notion that customers need to be persuaded to buy through aggressive selling and promotion. There are regular reports in the news about gas and electricity companies whose sales people have used selling tactics with these characteristics.

Marketing Concept � � � The marketing concept is based on the idea that organisations can best meet their objectives by concentrating on customers needs and satisfying those needs better than competitors. Organisations do not always adopt the marketing concept in the beginning but finds they evolve towards the concept as they seek to survive and remain profitable in the long term. This puts the customer at the centre of the decisions made, a business that follows this concept focuses on the products that customers will need and use.

Objectives � As well as sector objectives, there also marketing objectives and these are different to a business objectives; � � � Market Leadership Brand Awareness Perceptions of customers or users Marketing objectives should always support a business’ objectives. Organisational Objectives; private (survival and growth) public and voluntary (service provision, growth of provision, meeting quality standards)

Growth Strategies – Ansoffs Matrix This is where a This is where you enter an existing market with an existing product. E. g. Launching a new computer game- the gaming market already Produc exists as do computer t/ game products. business develops a new product to an existing market. Present New Market Present Market Penetration- This is where a New company introduces an existing product to a new market. E. g. Introducing the Wii to the over 60’s Product Development E. g. Selling accessories to a computer gamethe Wii Fit to an existing gaming market Market Diversification Development This is where a business invents a new product to a new market. E. g. When the Wii was introduced.

Survival Strategies � � Branding- Branding incorporates a brand name, slogan and logo. Sometimes a brand can be trademarked to stop anyone copying them. Branding can influence customers to buy new or different products. For example if you buy Heinz beans and are brand loyal, you will also buy Heinz Spaghetti. As soon as a brand is strong they can utilise this and charge higher prices/ launch new products in new markets Brand building and positioning- A business needs to decide upon their brand values and the message they wish to convey. This can be done through; � Consistent styles in promotional materials � Specific fonts, wording, images and layout � Training staff to present a specific image. Brand extension -As soon as a business has developed a brand they may wish to extend it, this could be through developing new products or entering new markets. Brand extension is a cost effective way of developing new products. Consider the Virgin Brand. Relationship Marketing -This is concerned with focusing on the long term value of a customer. This includes creating relationships, identifying valuable customers and maintaining these relationships. Relationship Marketing can be used by businesses such as banks to encourage customers to use more of their services. Relationship Marketing is the opposite to transactional marketing which solely focuses on making a sale.

P 1 - Describe the marketing techniques used in the products or services of two different businesses � � � � You will be completing P 1 and M 1 through writing a report. To meet this criteria your work must reflect a business report format. Introduction- Define marketing, introduce the two companies and products you are investigating Describe the 4 P’s of marketing, and the 4 P’S for your companies Describe the 3 different marketing concepts and identify the concepts that the businesses use. Describe the range of marketing objectives and how these support the organisational objectives then explain which marketing objectives are relevant to your companies Describe the methods of growth and survival strategies that each business use for the two chosen products. Explain where your business fits into the Ansoffs matrix. Conclusion – Compare the techniques that are used in your organisations what are the similarities and differences in the two organisations

M 1 - Compare marketing techniques used in marketing two different products � Identify the similarities and differences in the techniques that are used by the two different businesses. � This should include a comparison of : � � � � The pricing strategies used The methods of promotion used The types of products sold The marketing concepts they use Where they fit into the Ansoffs matrix The survival strategies they use. You should state how both companies are similar and different and reasons for this. To extend your work research advantages and disadvantages of the methods used. AND USE EXAMPLES

D 1 - Evaluate the effectiveness of the use of techniques used in marketing products in one organisation � � Choose one of your organisations. Evaluate HOW EFFECTIVE they are at each concept or principle. � This should include: � � � � The pricing strategies used The methods of promotion used The types of products sold The marketing concepts they use Where they fit into the Ansoffs matrix The survival strategies they use. Consider in detail the advantages and disadvantages that exist in the marketing techniques the business uses. Write a conclusion which makes judgements about how good the company is and how it affects other sections of the business.

D 1 Sample