<3.1 MARKETING>

1. Find out what customers want.

2. Give them what they want. 

3. Keep these existing customers happy (Develop loyalty, repeat customers)

4. Find out info about what customers are thinking.

5. Use info to anticipate changes in future customer needs.

• Apply the 5 roles of marketing mentioned above to the marketing dep't of TES. I have done the first one for you:

1. Find out what customers want. "The TES marketing department conducts parent surveys to see if they think replacing IGCSE with MYP is what they would like? 

2. Give them what they want. 

3. Keep these existing customers happy.

4. Find out info about what customers are thinking (Follow-ups).

5. Use info to anticipate changes in future customer needs.

2-MARKERS

• What is meant by ‘customer loyalty’?

• Identify two ways that a business could build good customer relationships.

4-MARKERS

• Identify and explain two reasons why building good customer relationships might be important to the success of George’s business.

• Identify and explain two reasons why maintaining customer loyalty is important to AUC.

• Identify and explain two reasons why it is important for Luis to build customer relationships.

6-MARKERS

• ALB Explain two ways ALB could improve customer loyalty.

• WKN Identify and explain two advantages to WKN of maintaining customer loyalty.

• GBU Do you think maintaining customer loyalty should be more important to GBU than attracting new customers? Justify your answer.

• GOMEZ Identify and explain two methods that Gomez could use to maintain customer loyalty.

• FLYAWAY Identify and explain two ways in which FlyAway could improve customer service.

8-MARKERS

• Case study link (FF) Identify and explain two possible reasons why Thao and Liang have set ‘excellent customer service’ as the main business objective.

• Case study link (BB) Identify and explain two reasons why it is important to Bethany to identify changes in customer preferences. 

• Case study link (DD) Identify and explain two ways in which marketing is important for DD.

• Case study link (CB) Identify and explain two reasons why marketing is important to CB when Chris starts his new business.  

12-MARKERS

• Case study link (VG) Consider the following three roles of marketing in Peter's business. Which one of these is the most important role? Justify your answer. 

• Of course, CUSTOMER NEEDS DO NOT STAY THE SAME FOREVER and if business fails to respond to changing customer needs they are likely to fail., AS THE CUSTOMER IS KING. REASONS WHY CUSTOMER SPENDING PATTERNS CHANGE INCLUDE:

• TASTES & FASHIONS CHANGE--E.G. TOUCHSCREENS...

• TECHNOLOGY CHANGES--E.G. KODAK CAMERAS, BLACKBERRY, WEARABLES...

• INCOME CHANGES--E.G. DURING A RECESSION LUXURY GOODS AREN'T DEMANDED

• DEMOGRAPHIC CHANGES--E.G. AGING POPULATIONS AND THE DEMAND FOR CAREGIVERS

• COMPETITIVE CHANGES-- COMPETITION HAS INTENSIFIED IN MANY MARKETS DUE TO:-

-GLOBALISATION--E.G. CHEAP & EASIER SHIPPING MEANS OVERSEAS GOODS ARE NOW AS COMPETITIVE OR EVEN CHEAPER THAN LOCAL GOODS.

-E-COMMERCE--E.G THE EASE AT WHICH CONSUMERS CAN NOW SEARCH NATIONAL AND GLOBAL MARKETPLACES, GET PRODUCT REVIEWS, AND PAY AT THE TOUCH OF A BUTTON HAS REDUCED THE NEED TO SHOP IN PERSON.

FROM THE PERSPECIVE OF A TAIWANESE MANUFACTURER OF SMARTPHONES. FOR EACH TYPE OF MARKET CHANGE BELOW, EXPLAIN HOW IT MIGHT HAVE IMPACTED THE BUSINESS, AND EXPLAIN HOW THE BUSINESS MAY HAVE RESPONDED. (15)

• TASTES & FASHIONS: In recent years the market has changed its taste in smartphone design, preferring touchscreen, non-flip, larger screens with no buttons.

• TECHNOLOGY

• INCOME

• DEMOGRAPHICS

• GLOBALISATION & E-COMMERCE

• IF A PRODUCT HAS A SMALL NUMBER OF SALES AS A PROPORTION OF A LARGER MARKET IT CAN BE CONSIDERED A NICHE MARKET PRODUCT, AS IT CLEARLY ONLY APPEALS TO A SECTION (SEGMENT/NICHE) OF THE GENERAL PUBLIC, HENCE ALL MARKETING EFFORTS SHOULD BE CONCENTRATED ON SELLING TO THIS PARTICULAR 'NICHE', THIS IS CALLED 'NICHE MARKETING'. NOTE THAT A NICHE CAN STILL BE HUGE IN TERMS OF CUSTOMER BASE, 

• E.G A NICHE MARKET OF SPORTS FANS, ARE FOOTBALL FANS, A NICHE MARKET OF FOOTBALL FANS ARE NORWICH FANS, A NICHE MARKET OF NORWICH FANS ARE SEASON TICKET HOLDERS AND SO ON....

• SELLING A NICHE-MARKET PRODUCT PROS & CONS:

• (+) AS THEY AREN'T A MASS-MARKET APPEAL, LARGE PLAYERS WILL LIKELY NOT COMPETE.

• (+) CAN PROVIDE MORE CUSTOMIZATION TO CUSTOMERS' SPECIFIC WANTS.

• (-) LIMITED SALES AND PROFIT OPPORTUNITIES.

• (-) USUALLY LIMITED TO ONE PRODUCT, SO UNABLE TO SPREAD RISK IN DOWNTURN.

• (-) LESS ABLE TO ACHIEVE ECONOMIES OF SCALE 

• Explain why IBDP is considered a 'NICHE MARKET'

• List the 'PROS & CONS' for OFS of offering IBDP in Singapore.

• Give an example of a 'NICHE MARKETING STRATEGIES' used by OFS to reach its target customers.

WATCH THE VIDEO ABOVE AND CREATE AN INFOGRAPHIC (IN YOUR GOOGLE DOC FOR PRINTING) USING REAL-LIFE EXAMPLES ILLUSTRATING THE DIFFERENCE BETWEEN MASS AND NICHE MARKETS IN THE SAME INDUSTRY, INCLUDE THE ADVANTAGES AND DISADVANTAGES IN YOUR GRAPHIC (8) 

• The first step in any marketing plan is to IDENTIFY THE SECTION OF SOCIETY that you wish to target your marketing efforts towards.

• As such MARKET SEGMENTATION refers to the process of DIVIDING POTENTIAL CUSTOMERS INTO 'BROAD' GROUPS BASED ON SIMILAR INTERESTS AND CHARACTERISTICS. like age, location, behavior, or lifestyle. This helps companies understand their customers better and sell to them more effectively. 

• Let's look at the FOUR BROAD SEGMENTS in turn!

Segment the market for 'Private education' into at least 5 segments. [WHOLE CLASS]

1. By age, eg kindergarten, primary etc..

Kate is an entrepreneur. Two years ago she left her job as a fashion designer at a multinational company. She started up BBB, a women’s sportswear clothing business. BBB targets a market segment of high-income consumers. BBB’s products are sold in 3 retail shops and also through its website. Kate said: ‘I saw a gap in the market and took the risk. Obtaining the finance I needed from the bank was not easy. I enjoy making decisions such as using leaflets to promote the clothes.’  BBB’s revenue target for next year is $500000

Identify and explain two reasons why segmenting the market might help BBB.

Reason 1: 

Explanation 1:

Reason 2:

Explanation 2: