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Marketing Fundamentals

The Core Definition

What is Marketing?

Marketing is the process businesses use to promote and sell products or services by understanding and satisfying customers’ needs.

The Role of Marketing (2.1.1)

Marketing fulfills several crucial roles within a business, ensuring products align with market demand and strategy.

1

Identifying a Market

Businesses research and segment markets to find customer groups with specific needs and wants.
2

Satisfying and Informing

Marketing ensures products meet demands and communicates benefits effectively.
3

Increasing Sales

Through promotion and distribution strategies, marketing aims to boost purchases.
4

Creating a Unique Selling Point (USP)

A feature that differentiates a product from competitors (e.g., quality, price, innovation).

Marketing Orientations (2.1.2)

🎯

Market Orientation

Focuses on identifying and meeting customer needs before product development.
🔬

Product Orientation

Focuses on product quality or innovation, assuming customers will want the best product.

Why We Research (2.2.1)

Purpose of Market Research

To understand customer preferences, habits, and overall demand to reduce uncertainty and make informed business decisions.

Primary Research Methods (2.2.2)

Primary research involves gathering new data directly from the market.

Q

Questionnaires

Structured surveys gathering specific data.
I

Interviews

In-depth discussions to explore opinions.
T

Trialling

Testing products with real users.
F

Focus groups

Group discussions to gauge reactions.
O

Observation

Watching customer behavior without direct interaction.

Secondary Data Sources (2.2.3)

📚

Existing Data: Secondary research uses existing data such as newspapers, books, census info, company records, websites, and government reports.

Methods of Sampling (2.2.4)

🎲

Random sampling

Every member of the population has an equal chance.
📊

Stratified sampling

Divides population into segments and samples each proportionally.
🔢

Systematic sampling

Selecting every nth person from a list.

Qualitative vs Quantitative Data (2.2.5)

🗣️
Qualitative DataDescriptive insights like opinions or feelings.
📈
Quantitative DataNumerical data that can be measured and analyzed statistically.

Key Market Metrics (2.3.1)

📏

Market size

Total sales volume or value within a market.
%

Market share

Business’s percentage of total market sales.
⬆️

Market growth

Rate the market is expanding or contracting.

Types of Market Structures (2.3.2)

🛒

Business to Consumer (B2C)

Businesses sell directly to consumers.
🤝

Business to Business (B2B)

Transactions between businesses.
🌎

Mass markets

Large volume sales, targeting broad audience.
💎

Niche markets

Small, specialized segments with targeted products.

Segmentation Bases (2.3.3)

Dividing the market into groups with similar characteristics:

D

Demographic

Age, gender, income, education.
G

Geographic

Location differences (cities, countries).
P

Psychographic

Lifestyle, personality, values.

The 4 Ps Framework (2.4)

The Marketing Mix

The marketing mix consists of the 4 Ps: Product, Price, Promotion, Place.

Product Life Cycle Stages (2.4.1)

The stages a product goes through from launch to withdrawal.

1

Introduction

(launch)
2

Growth

(increasing sales)
3

Maturity

(sales peak)
4

Decline

(sales fall)
E

Extension strategies

Actions to prolong life (new markets, updates).

Product Portfolio: The Boston Matrix

Classifies products to help strategic planning:

❓

Question marks

Low market share, high growth.
⭐

Stars

High share, high growth.
🐄

Cash cows

High share, low growth.
🐕

Dogs

Low share, low growth.

Pricing Strategies (2.4.2)

Methods for determining product cost:

1

Skimming

High initial price to recover development costs.
2

Cost-plus

Adding a fixed margin to cost price.
3

Penetration

Low price to enter and capture market.
4

Competitor pricing

Based on rival prices.
5

Psychological pricing

Setting prices to impact perception (e.g., £9.99).
6

Dynamic pricing

Prices fluctuate based on demand.
7

Freemium

Basic product free, charges for premium features.

Elasticity Concepts

Price Elasticity of Demand (PED)
Measures sensitivity of demand due to price changes.
Income Elasticity of Demand (YED)
Measures effect of income changes on demand.

Promotion Channels (2.4.3)

📰
Non-digital PromotionTraditional methods such as advertising, sales promotions, direct mail, packaging, branding, public relations, sponsorship, point of sale displays.
💻
Digital PromotionUse of internet and digital platforms including social media influencers, company websites, email marketing, search engine optimisation (SEO), pay-per-click (PPC) advertising, chatbots, content marketing (blogs, videos, podcasts).

Channels of Distribution (2.4.4)

How products move from the manufacturer to the customer.

1

Physical

Stores, wholesalers, retailers.
2

Digital

E-commerce websites, apps.
3

Multi-channel

Combining both physical and digital.

Key Distribution Intermediaries

📦

Wholesaler

Buys in bulk and sells smaller amounts to retailers.
🏪

Retailer

Sells direct to consumers.
🕴️

Agent

Facilitates sales without ownership of goods.
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Marketing Basics Deck
Term
Marketing

What is marketing?

Answer
Definition

The process businesses use to promote and sell products or services by understanding and satisfying customers' needs.

Term
Purpose of Marketing

What is the purpose of marketing?

Answer
Purpose

To identify a market, understand and satisfy customers, increase sales, and create a unique selling point (USP).

Term
Unique Selling Point (USP)

What is a Unique Selling Point (USP)?

Answer
Definition

A feature that differentiates a product from competitors, such as quality, price, or innovation.

Term
Market Orientation

What is market orientation?

Answer
Definition

A marketing approach focusing on identifying and meeting customer needs before product development.

Term
Product Orientation

What is product orientation?

Answer
Definition

A focus on product quality or innovation, assuming customers will want the best product.

Term
Types of Market Research

Name two types of market research.

Answer
Types

Primary market research and secondary market research.

Term
Primary Market Research Methods

Give two examples of primary market research methods.

Answer
Examples

Questionnaires and focus groups.

Term
Random Sampling

What is random sampling?

Answer
Definition

A sampling method where every member of the population has an equal chance of selection.

Term
Qualitative Data

What are qualitative data?

Answer
Definition

Descriptive insights such as opinions or feelings.

Term
Quantitative Data

What are quantitative data?

Answer
Definition

Numerical data that can be measured and analyzed statistically.

Term
B2C

What does B2C stand for?

Answer
Definition

Business to Consumer (selling directly to consumers).

Term
4 Ps of Marketing

What are the 4 Ps of the marketing mix?

Answer
Components

Product, Price, Promotion, Place.

Term
Product Life Cycle Stages

Name the four stages of the product life cycle.

Answer
Stages

Introduction, Growth, Maturity, Decline.

Term
Penetration Pricing

What is penetration pricing?

Answer
Definition

Setting a low price to enter and capture a market.

Term
Price Elasticity of Demand (PED)

What is Price Elasticity of Demand (PED)?

Answer
Definition

A measure of how demand changes in response to price changes.

Term
Digital Promotion

Give an example of digital promotion.

Answer
Example

Social media marketing or search engine optimization (SEO).

Term
Wholesaler

What is a wholesaler?

Answer
Definition

An intermediary who buys in bulk and sells smaller amounts to retailers.

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📈 Marketing Quiz

1. What is the main purpose of marketing?

Marketing aims to understand and meet customer needs to promote and sell products.

2. Which of the following is NOT a primary market research method?

Census data is secondary research, not primary.

3. What does USP stand for in marketing?

USP differentiates a product from its competitors.

4. Market segmentation can be based on:

Segmentation divides markets by customer characteristics like age, location, and lifestyle.

5. Which pricing strategy involves setting a high price initially?

Skimming uses a high initial price to recover costs before lowering prices.

6. Which of these is a digital promotion method?

Social media marketing is digital, while the others are traditional promotion.

7. The Boston Matrix classifies products into all EXCEPT:

The Boston Matrix categories are Stars, Question Marks, Cash Cows, and Dogs.

📊 Results

  • Notes and Quiz
  • Business
  • AS Level
  • Marketing
  • OCR