The Marketing Environment

Understand the role of marketing in a business.

Ways businesses use marketing may include:

• sell products or services to other businesses or customers
• raise profile of business in different markets
• gathering information about own products and services and provides opportunities to develop new products or services

Assessment Criteria

• 1.1

  Explain how a business uses marketing.

Understand the term ‘marketing mix’ (7Ps).

Use the 7Ps marketing mix.

Importance of all elements of the marketing mix may include:

• ensure a viable product or service that meets the needs of the customer
• may open up market to other customers

Assessment Criteria

• 2.1

  Explain the key elements of the marketing mix (7Ps).

• 2.2

  Explain why it is important for a business to address all elements of the marketing mix in order to be successful.

Know the importance of understanding the market place.

Key elements of the market place may include:

• where potential customers are geographically - counties, countries, cities, country and rural
• demographics eg age, religion, occupation, education
• lifestyle of potential customers
• cultural differences

Reasons for knowing this information may include:

• customer retention
• likelihood of customers moving to competitors
• costs versus benefits

Ways to improve understanding of the marketplace may include:

• talking with potential buyers
• researching competitors
• researching any developments in the relevant sector
• identify areas of the market that are not being accessed

Assessment Criteria

• 3.1

  Describe the key elements of the marketplace that a business needs to understand.

• 3.2

  Outline why an understanding of each element is important to a business and how it affects decision-making.

• 3.3

  Describe some key techniques for improving understanding of the marketplace.

Know the importance of understanding buyer behaviour.

Typical steps to buying and how marketing activity influences the buyer may include:

• identifying the need for a product or service - advertising to encourage 'want' rather than 'need'
• searching for information - providing appropriate and effective information, use of different forms of media
• looking at the alternatives - comparisons between own product and competitors, highlighting benefits, differences, unique selling points
• making a decision - influencing skills, effective promotion e.g. use of personalities to promote produce
• reviewing the action after making the decision - feedback forms to give information about use of product, acquire contact details to create future customer base.

Assessment Criteria

• 4.1

  Describe the typical steps taken by a buyer from identifying a need for a product or service to completing a purchase.

• 4.2

  Explain how an organisation can use marketing activity to influence buyer behaviour at each of these stages.