Marketing

Unit 3 Topic 3.1.1

Unit 3: Building a Business

Topic Overview

1. What is marketing?2. Market research3. Product trial & repeat purchase4. Product life cycle5. Branding & differentiation6. The marketing Mix

Topic 3.1 Marketing

Aims for today

• To be able to define the meaning of ‘marketing’?

• To appreciate the nature of market research and how it can be used to inform the marketing mix.

Task 1: What is marketing?

• In your books, write a definition of what you think marketing is and what it involves.

Marketing is:

“The management process of anticipating, understanding and satisfying customer needs at a

profit”

Marketing involves...

1. Developing products that customers want to buy;

2. Understanding the needs of customers;3. Selling products at a price affordable to

customers (and gives a profit to the company).

Which of the above is most important and why?

Task 2: The Need for Market ResearchGroup Activity:You are launching a new brand of kids sweets. What do you need to do as part of your market research and why?

Copy and complete this table into your book.

What we need to do/find out.

Why we need to do this?

How will this help the company?

Stages of market research

Market research methods & keywords

qualitative

Task 3: How can market research be used to inform the marketing mix?

Discuss in your groups and write your answer in your book.

- Remember the sweets task! –

Marketing Mix for Ryanair

Product or Service

• Low cost, no frills air travel to Europe.

• There is no free food or drink onboard.

• The company has deals with Hertz car rental, and a number of hotel businesses. Other examples include phone cards and bus tickets.

Price

• Ryanair has low fares.

• 70% of seats are sold at the lowest two fares.30% of seats are charged at higher fares. The last 6% are sold at the highest fare.

• Ryanair occasionally get in trouble with bodies such as the Advertising Standards Authority (ASA) in the UK over differences between advertised and actual price.

Place• Ryanair does not use travel agents so it does not pay agency commissions.

• They are based in Stanstead in Essex - which is known as a secondary airport. It is new and accessible. It is cheaper to fly from Stanstead than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.

• Many of Ryanair's destination airports are secondary. For example if you fly to Copenhagen (Denmark) you arrive in Malmo (Sweden) - although it is only a short coach trip over the border.

• Keeping aircraft in the air as much as possible is another important part of the low cost jigsaw.

Promotion• They spend as little as possible on advertising and do not employ an

advertising agency. Instead all of the advertising is done in-house.

• Ryanair employs controversy to promote its business. For example in 2009, the company reasoned that passengers would be charged £1 to use the toilets on board. O'Leary reasoned that passengers could use the terminals at either the destination or arrival airport. This would speed things up. It was reasoned that this is what passengers wanted - since they did not want other passengers leaving their seats and walking the aisles to go to the toilet. O'Leary also argued that larger passengers should be charged more since they took up more room - again it was reasoned that this is what the majority of passengers wanted.

• Some of their aircraft are decorated in the livery of advertisers e.g. News of the World, Jaguar and Kilkenny (beer).

Qualitative & quantative

1. What did you learn this lesson that you did not know before?

2. Which part of the lesson did you most enjoy?

3. Which part of the lesson could you use a bit more help with?

4. Which of your achievements are you most proud of this lesson?

Reflect on your learning!