https://padlet.com/jf41/Marketing1 Chapters 14 to 16 en-us 2018-02-21 10:13:16 UTC 2024-07-15 19:00:07 UTC hello@padlet.com jf41 https://padlet.com/jf41/Marketing1/wish/233662188 The idea to start up a business can come about for a variety of reasons:
(a) Anyone working for an employer who goes on to start their own business obviously has a preference for self-employment.
(b) some people see opportunities in the business they are in, and start an enterprise in order to introduce new products or improve existing ones.]]> 2018-02-21 10:18:40 UTC https://padlet.com/jf41/Marketing1/wish/233662188 jf41 https://padlet.com/jf41/Marketing1/wish/233664408 The following are the main challenges when starting up a new business
Raising finance.
The business has to decide on the following:
(a) How much finance is required to start the new business venture?
(b) Which sources of finance should be used ? for example
(i) Short term, e.g. bank overdraft to pay salaries and running costs, such as insurance.
(ii) Medium term, e.g. leasing to acquire a compute.
(iii) Long term, e.g. long-term loan to rent or purchase business premises.
Legal entity for the business.
The business owners must decide which form of business to set up, for example, a sole trader, partnership or a private limited company. In modern Ireland, the private limited company is the most sensible type of legal entity because the shareholders have limited liability, meaning they can only lose the amount they invested in the company.
Which production method to use.
If the new business is involved in manufacturing, then, depending on the product, a suitable production method must be used in order for the business to be competitive.
Employing suitable staff.
The new business must be aware of the skills required and then employ suitable staff.]]> 2018-02-21 10:26:30 UTC https://padlet.com/jf41/Marketing1/wish/233664408 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/233666385 From the employees: some firms have suggestions boxes and pay a bonus to the employee whose idea is used.
Brainstorming meetings: discussions sessions involving management and staff.
Research and development: identify new opportunities for the business.
Feedback from customers: comments from customers can consider new options to ensure their satisfaction.
Sales personnel: sales people have facilities to make suggestions.
SWOT analysis: ideas which help to eliminate any weakness that are highlighted.]]> 2018-02-21 10:33:10 UTC https://padlet.com/jf41/Marketing1/wish/233666385 jf41 https://padlet.com/jf41/Marketing1/wish/233670317 There are seven stages involved in the development of a new product/service. In the correct order these stages are:
(a) Idea generation.
(b) product/service screening.
(c) concept development.
(d) Feasibility study.
(e) Prototype development.
(f) Test marketing.
(g) Product launch.
(a) Idea generation.
The aim of ideas to develop new products to increase sales and profits. Special management meetings- called brainstorming sessions- may be held to consider new ideas.
(b) Product screening.
Screening involves considering the different ideas for new products and identifying which ones have the best potential for sales. Each proposed new product should be assessed as follows:
(a) Market requirements, which means what consumers require.
(b) Is the finance available to produce and market the product?
(c) Is the business capable of producing the product?
(c) concept development
This involves developing the idea to make it a reality; in other words, producing a new product. It is important to understand that a consumer only buys a product because it provides some benefit.
(d) Feasibility study.
This involves the following:
(a) Researching the market to test consumer reaction to the proposed new product.
(b) Assessing the profits from projected sales.
(e) Prototype (product) development.
This involves producing one unit of the new product to enable the marketing department to have it tested in the market. This is done by asking a few potential customers for their reaction to the product.
(f) Test Marketing.
This is necessary to access the reactions of potential customers in sale outlets in different locations nationwide. This enables a firm to use different forms of promotion and compare consumer reaction from different locations.
(g) Product launch.
This is the final stage in the development process of a new product when the product is launched in the market.

]]> 2018-02-21 10:48:49 UTC https://padlet.com/jf41/Marketing1/wish/233670317 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/233670444 Competitors: a firm must be aware of customers that believe competitors to be better, including price, quality of products and after-sales service.
Customer requirements: modify the design, packaging or price of the product to avoid losing potential customers.
Research agencies: specialist market research agencies may make suggestions for change.
Foreign travel: ideas may come from observations made at foreign trade fairs and exhibitions.
Franchising: it may encourage some entrepreneurs to sell franchised products.
Public procurement: this is the legal right of firms to tender for government contracts over €50,000, which must be put to tender]]> 2018-02-21 10:49:23 UTC https://padlet.com/jf41/Marketing1/wish/233670444 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/234641628 It is defined as the management process of gathering, recording and analysing of all the facts and data concerned with the transfer of goods from the producer to the consumer.]]> 2018-02-23 11:44:10 UTC https://padlet.com/jf41/Marketing1/wish/234641628 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/234642722 Description reasons: a firm may wish to find out what is happening in the market.
Predictive reasons: a firm may wish to predict what changes its customers will require in the future.
Explanatory reasons: a firm may want to explain issues relating to its marketing.
Exploratory reasons: a firm may want to check out the size of the market for a new product.]]> 2018-02-23 11:49:23 UTC https://padlet.com/jf41/Marketing1/wish/234642722 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/234644950 (a)Desk research (secondary research)
it involves analysing all the available internal and external information complied by other sources, such as government agencies.
Internal sources of information (qualitative information)
1.Some information may be in the records and files of the business.
2.The sales manager should have information on previous sales to the target market.
3.The finance department may have information on areas such as production costs.
External sources of information (quantitative information)
1.Statistic published by the government and the EU.
2.Reports published in various magazines and newspapers.
3.The Household Budget Survey, which publishes the spending patterns of Irish consumers on different kinds of goods.
4.The population census published by the Central Statistics Office. This information will enable firms to estimate the size of a national consumer market.
5. Information available on the internet, public domain.]]> 2018-02-23 12:00:32 UTC https://padlet.com/jf41/Marketing1/wish/234644950 jf41 https://padlet.com/jf41/Marketing1/wish/234648190 Field studies involve market research that is done by contacting people in the target market to get new information (called primary data)
(a) Survey.
The main reason for undertaking a survey is to ascertain the potential of a new or existing product, if a decision is to be made on the basis of the results of a survey.
(b) Questionnaire.
A questionnaire has to be carefully designed because every person receiving the questionnaire is asked the same questions. It is important that the questions are designed to ensure that the answer are accurate.
(c) Sampling.
If a decision is to be made based on the results of samples, then the sample must be reliable.
(1) Random sampling: People are chosen at random, so each member of the population has an equal chance of being chosen.
(2) Cluster sampling: A cluster of samples is selected at random, e.g. a random selection of people in new housing estates where there is a widely dispersed population. This method is often used for opinion polls.
 (d) Observing. Information is gathered by watching people's reactions to certain situations. This is an accurate way to see how people react, but it does not indicate the reason for their reaction.
(e) Estimating. The estimated size of the market is vital information for a business. When the size of the market is known, the next step is for the firm to estimate how much of the market share it, e.g., 20 per cent or 50 percent.
(f) Feasibility studies. This is an investigation of a proposal to access the technical problems and potential profitability of a new product or idea. The result of the study will determine whether or not a firm will proceed with its plan to produce a new product.
(g) Prototype. This involves producing one unit of the product and seeing what problems arise in manufacturing, costing, selling price and unexpected cost.
(h) Test-marketing. This determines the reaction of potential customers of the prototype. based on consumer reaction, it may be necessary to modify aspects of the product, such as the design, size or price, before mass or batch production quantities are made available.]]> 2018-02-23 12:16:25 UTC https://padlet.com/jf41/Marketing1/wish/234648190 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/238152456
Pricing strategies
(a) Cost plus pricing: This is the cost of producing goods plus a profit mark-up.
(b) Penetration pricing: This strategy is used when a business is launches a new product. It may involve selling at a very small profit.
(c) Skimming price: This is where a firm charges a high price in the short term.
(d) Competitive pricing: This involves matching competitor's selling prices.
(e) Premium pricing: This is associated with high-quality items.
(f) Seasonal pricing: Change the price depending on the season we are in.
(g) Sales pricing: These sales take place to enable retailers to clear their stocks of slow-moving products and to make room for the new season's lines.
(h) Loss leader pricing: This is a marketing strategy used to attract customers into the store by products at cost price.

]]> 2018-03-05 15:51:25 UTC https://padlet.com/jf41/Marketing1/wish/238152456 jf41 https://padlet.com/jf41/Marketing1/wish/239073428 What is marketing?
Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitability.
Marketing lies at the heart of every successful business.
It begins with market research to find out what the customers want.]]> 2018-03-07 10:53:53 UTC https://padlet.com/jf41/Marketing1/wish/239073428 jf41 https://padlet.com/jf41/Marketing1/wish/239074401 2018-03-07 10:57:16 UTC https://padlet.com/jf41/Marketing1/wish/239074401 jf41 https://padlet.com/jf41/Marketing1/wish/240101736 This relates to all the activities that are involved in satisfying customer requirements. The marketing manager is responsible for controlling the marketing of the firm's products.
Functions of the marketing manager.
(1) To carry out market research to learn consumers' exact requirements and submit a report to management.
(2) To prepare sales forecasts, which are sales budgets, for the board of directors.
(3) To identify the different markets for the firm's products.]]> 2018-03-09 12:07:23 UTC https://padlet.com/jf41/Marketing1/wish/240101736 jf41 https://padlet.com/jf41/Marketing1/wish/240103342 The marketing strategy is a  marketing plan that outlines how the policies relating to product, price, promotion and place are to be carried out in order to achieve the business sales and profit target.
Developing a marketing strategy.
(1) Access the market to see if any new business opportunities can be identified.
(2) Undertake market research into the needs of the selected target market.
(3) Prepare a marketing plan.]]> 2018-03-09 12:14:42 UTC https://padlet.com/jf41/Marketing1/wish/240103342 jf41 https://padlet.com/jf41/Marketing1/wish/240105301 A marketing plan will help determine future decision-making in relation to trading, financial requirements and the direction the business should take, such as whether or not to develop an export market.
Benefits of a marketing plan.
(1) A good plan can exist only after management have undertaken a SWOT analysis. This enables management to establish priorities and make better decisions in order to increase sales to customers.
(2) A good plan means that the firm is well organised, aware of its targets and able to cope with any deviation that might occur.
(3) The existence of a marketing plan will impress potential investors and/or a bank if additional finance is required for expansion.]]> 2018-03-09 12:23:12 UTC https://padlet.com/jf41/Marketing1/wish/240105301 jf41 https://padlet.com/jf41/Marketing1/wish/240108479 The concept of market segmentation is based upon three assumptions:
(a) That consumers have distinct profiles, e.g. male, female, young and old.
(b) differences in consumers are related to differences in market demand, e.g. income levels are different.]]> 2018-03-09 12:34:16 UTC https://padlet.com/jf41/Marketing1/wish/240108479 jf41 https://padlet.com/jf41/Marketing1/wish/240945698 A niche market is a small target segment of a bigger market. It is a specialist market with only a few suppliers catering for new or poorly served market sectors. It involves serving a target market with a specialised product or service which meets the needs of consumers of that niche.]]> 2018-03-12 15:49:52 UTC https://padlet.com/jf41/Marketing1/wish/240945698 jf41 https://padlet.com/jf41/Marketing1/wish/240950362 Success in business at any cost is not an acceptable idea to the general public.
Some consumers take concern for the environment a step further and will only buy products that minimise damage to the environment]]> 2018-03-12 15:55:59 UTC https://padlet.com/jf41/Marketing1/wish/240950362 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/241783381 This involves communicating with customers through advertising, sales promotions, public relations and personal selling.]]> 2018-03-14 10:26:57 UTC https://padlet.com/jf41/Marketing1/wish/241783381 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/241784242 This refers to the various ways used by manufacturers to sell and distribute products to their customers.(target market)

1. Some manufacturers sell direct to customers and bypass both the wholesaler and retailer.
2. Some manufacturers, such a s newspaper publishers, bypass the wholesaler and direct to retailers.
3. Some manufacturers sell t wholesalers, who in turn sell to retailers, who then sell to consumers.
4. When a supplier in one country sells to a customer in another via the internet.]]> 2018-03-14 10:29:27 UTC https://padlet.com/jf41/Marketing1/wish/241784242 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242762297 The marketing mix of product, price, promotion and place are based on the customers' needs. A firm must must have the right marketing mix in order to maximise sales and profits. ]]> 2018-03-16 11:55:54 UTC https://padlet.com/jf41/Marketing1/wish/242762297 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242765159 Fixed and variable costs:
1. Fixed costs do not vary with the number of units produced or sold(rent, insurance).
2. Variable costs vary with the number of units produced or sold(raw materials, electricity).
Break-even chart:
Provide management with important information. They show the level of output required for a business to break even.]]> 2018-03-16 12:04:43 UTC https://padlet.com/jf41/Marketing1/wish/242765159 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242768154 1. If the selling price is increased, the amended break-even chart will show management what new sales/output level in units is required for the firm to break even.
2. If variable costs increase, the break-even point will be adversely affected.
3. If fixed costs increase, it will be necessary for management to calculate the new break-even point in order to recover the additional costs.
4. The break-even chart illustrates the impact decisions to increase or reduce selling prices have on profits.]]> 2018-03-16 12:13:15 UTC https://padlet.com/jf41/Marketing1/wish/242768154 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242772276 (a) They are drawn up on the assumption that all the goods will be sold. This does not always happen.
(b) Fixed costs only remain fixed if the scale of production does not increase.
(c) they assume no other stocks are available for sale.]]> 2018-03-16 12:23:48 UTC https://padlet.com/jf41/Marketing1/wish/242772276 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242774469 In practice, many firms do not draw break-even charts as they are mainly interested in calculating the actual break -even figure and making decisions from there ]]> 2018-03-16 12:28:38 UTC https://padlet.com/jf41/Marketing1/wish/242774469 17vsjbermudezpena https://padlet.com/jf41/Marketing1/wish/242775259 Is the excess of the projected or budgeted sales volume over the firm's break-even point.It may be stated in units or in euro.]]> 2018-03-16 12:30:19 UTC https://padlet.com/jf41/Marketing1/wish/242775259