In this unit I will: gain an insight into what marketing is, and how it is used. The organisations you will be looking at are Disney and Shake away, two organisations you may already know a lot about. You will have the opportunity to understand what these organisations aim to achieve and how marketing helps them to achieve and how marketing helps them achieve it. You will be working independently and in a team, producing individual written work and practical presentation.
P1– “Describe how marketing techniques are used to market products in two organisations”
The activities of a company associated with buying and selling a product or service. It includes advertising, selling and delivering products to people. People who work in marketing departments of companies try to get the attention of target audiences by using slogans, packaging design, celebrity endorsements and general media exposure. The four 'Ps' of marketing are product, place, price and promotion, more detail:
Identification, selection and development of a Product,
Determination of its Price,
Selection of a distribution channel to reach the customer's Place, and
Development and implementation of a Promotional strategy.
There are two different marketing techniques:
This depends on the 4 categories for growth; market penetration, market development, product developmentand diversification.
Market penetration is about marketing existing products within the same market
Market development is about marketing an existing product into a new market, e.g. selling the same product in a different country. So nothing about the product has changed it is just in a new market.
Product development is aboutdeveloping a new product to sell to existing customers, e.g. customers buy your product and then you develop another side product that is linked with the first product. So basically customers are purchasing the existing product and then are able to purchase a product that works with the existing product.
Diversification is about marketing new products to new customers, this is most risky section of the Ansoff's matrix, as the business has no experience in the new market and does not know if the product is going to be successful.
This is when businesses have to resort to marketing strategies in order for their business to survive.
Branding is the process that involved in creating a unique name and image for a product in the consumers’ minds through advertising campaigns with a consistent theme, this can be done by enhancing a brands equity directly through advertising campaigns and indirectly through promotions such as sponsoring causes or event sponsorship. Once the brand is established they can use brand extension marketing strategy, so this is where the firm with a well-developed image uses the same brand name in a different product category
Relationship Marketing is where a business focuses on the long-term value of a customer. Relationship marketing is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication. This approach often results in increased word-of-mouth activity, repeat business and a willingness on the customer’s part to provide information to the organization. This differs from transactional marketing because it is an approach that focuses on increasing the number of individual sales. Most organizations combine elements of both relationship and transaction marketing strategies.
Shakeaway is a large franchise that sells many different flavours of milkshakes and other drinks. They combine other company’s products together to make unique combinations of smoothies and milkshakes. The company was founded in 1999 and has stores all over the world. Shakeaway is in the private sector and its shares are not owned by the government and are privately owned within the company.