MARKETING

Marketing is the entire process responsible for identifying, anticipating and

satisfying customer requirements profitability.
What is a Market?
The word marketing comes from the word market. A market refers to a place where
goods and services are bought and sold, for example a supermarket, a street market, a
wholesale market or a stock market.
Target Market
A market can also refer to those members of the public who purchase particular goods
and services. These people are referred to as the target market for that particular
product or service and will usually have something in common, for example they may
be the same age, have the same hobbies and interests or have the same level of income
and they have been identified as likely customers of a product or service.
For example, the target market for Eurobusiness textbook would be Junior Certificate
students studying business!
A target market is a group of people who all need or want a particular product or
service.
Who would be the target market for the following:
Milking equipment
Disposable nappies
Leaving Certificate History Books
The Marketing Mix
The marketing mix has four elements which are often referred to as the four Ps of
marketing: Product, Price Place, Promotion.
The combination of decisions regarding product, price, place and promotion used
by a firm to implement its marketing strategy.

Product

Producing the right product, i.e. the one that meets the needs of
the consumer, and packaging it so that it is attractive to
consumers and meets all legal requirements. It should also have
a unique selling point (USP)
Price
Choosing the most suitable price at which to sell the product.
Here, the seller must take into account:
Prices charged by competitors.
The total cost of making and selling the product.
The income level of the people the product is aimed at.
The profit they wish to make.
Place
Choosing the best way to distribute the product, i.e. through
wholesalers, direct to retailers or direct to the consumer.
Promotion Getting the product or service known among the buying public
and providing an incentive for them to purchase it, e.g.
advertising, Sales Promotion, Public Relations and Personal
Selling i.e car salesman.
Questions/factors a company should ask/consider before deciding to launch a new
product -:
Is there are market for the product?
Does the new product suit the consumers needs and wants?
Who are the target market?
Who are the competitors and what is their market share?
What price should the company charge for the new product/ will customers buy
the product at the proposed price?
What types of promotion should be used?
MARKET RESEARCH
One of the most important steps in business is to find out what products the consumer
needs and wants. A firm will require other information from their customers such as the
price they would be prepared to pay for a product and a suitable name for a product. To
discover the answers to these questions the firm must carry out market research. Market
research is the gathering and analysing of information about a product and its market.
Market research is the gathering, recording and analysing of information about a
product and its market.
The main aims of market research are:
To find out what the consumer wants.
To discover the size of the market that exists for the product or service.

To work out a suitable selling price.

To find out the most suitable method of advertising to use.
To find out the most suitable method of distributing the product.
To test a suitable name for the product.
To find out who the main competitors are and the share of the market they already
hold.

Market research may be undertaken:

If launching a new product/service.
If existing sales are falling.
If the business is thinking about a price change.
If undertaking a new advertising campaign.
Carrying out market research is important because:
It reduces the risk of failure of the product/service by ensuring it is designed to
meet the publics needs and wants.
It can save the business money in the long term by avoiding costly errors.
The sales and profits of the business should grow.
The business should be able to respond quickly to changes in the market and
gain a competitive advantage.
METHODS OF COLLECTING INFORMATION
A firm may carry out their own market research or they may hire a market research
company to carry out the research for them. There are a number of methods used by
market research agencies to collect the information for their clients. They are as
follows:
A)

DESK RESEARCH

This is when information is collected about a market by looking up existing reports,

newspaper articles, information from the CSO (Central Statistics Office) and other
relevant documents. It has already been done by someone else for another purpose and
merely needs to be retrieved. Because of its low cost and availability it should always
be undertaken before Field Research.
ADVANTAGES OF DESK
RESEARCH
1. It is not very expensive to carry out
desk research.
2. Using the internet means you can
get a large amount of information very

DISADVANTAGES OF DESK
RESEARCH
1. The amount of information available
about a particular market may be very
limited.
2. The information available may be out of
date.

quickly.
B)

FIELD RESEARCH

This method of finding out information involves going out and making direct contact
with the people who make up the target market for your product or service.
Methods of Field Research
1.

Questionnaires

Printed questionnaires are given to people who complete them and return them to the
researcher. They may be sent in the post, read out over the telephone or given directly to
members of the public. Alternatively, members of the public may be invited to attend a
particular venue, for example a hotel, where they complete the questionnaire. A small
payment plus refreshments is usually provided.
Questionnaires should be designed in such a way that they are easy to understand by
those completing them but detailed enough to get the required information.
Advantages of Questionnaires
1. The consumers are given time to
think about their answers.
2. The researcher can get the views
of a wide range of people.
3. The cost is relatively low.
2.

Disadvantages of Questionnaires
1. A large number of people do not
return questionnaires.
2. Some people do not answer the
questions truthfully or completely.

Test Marketing

Test marketing is used by firms who are about to launch a new product. It involves
trying out the product on a small scale before investing in new equipment or an
expensive advertising campaign. Test marketing shows up small problems or features
which consumers dislike.
Advantages of Test Marketing
1. The company can find out what
the consumer likes and dislikes about
the product before investing a large
amount of money.
2. Changes can be made to the
product before full production
commences.

Disadvantage of Test Marketing

1. It is an expensive method of
research.
2. Test marketing involves delivering
the product to the consumer and
returning again to find out their

comments.
3.

Direct Observation

This is where members of the public are observed as they go about their normal
business, for example observing the products they buy in a supermarket, observing
traffic flow during a traffic survey etc.
Advantages if Direct Observation
1. The results are very accurate.

Disadvantages of Direct
Observation
1. The results only show how
consumers behave and not why
consumers behave in certain ways.
2. It can be more expensive than
other methods of collecting
information.

CHOOSING A SAMPLE
One of the most important parts of market research is selecting the people who will take
part in the survey. This group is known as the sample.
The sample must be large enough so that the results will be accurate.
Most importantly, there must be a cross section of the views and ideas of the total
target market included in the sample.
It would be ideal if a business could ask all consumers relevant questions, but this is
impossible due to lack of time and cost. Therefore researchers ask a sample number of
people who are seen to represent the whole market.
The methods of sampling include:
Cluster Sampling: People in a certain area, e.g. a housing estate, are invited to answer
a questionnaire.
Random sampling: Sample members are selected randomly from a population list
containing every member. Everybody has an equal chance of being asked.
Quota sampling: Respondents are chosen in proporation to the consumer profile within
your target market. For example, if you know that 25% of your buyers are male, then
one male should be chosen for every three females in your sample.
Stratified sampling: The population is made up of different levels (strata), e.g.
employed and unemployed, urban/rural, male/female, occupations, etc. This sample

includes people from each level and is seen to represent the entire population, e.g.
political polls.
MARKET SEGMENTATION
This refers to the dividing up of a market into groups. Dividing up the market helps
sellers and advertisers to find out their target market easily. These groups can be formed
in the following ways:
By age
By income
By where they live
By occupation etc.
PRODUCT DEVELOPMENT
Every business needs to keep its products up-to-date to meet consumers changing
needs. This may involve changing the design of a product, replacing an existing product
with a new one, or renaming an existing product to make it sound more attractive (e.g.
Opal Fruits renamed to Starburst!, Jif renamed Cif)
Sometimes a business will decide to produce a product which is currently being
imported from another country. This is known as IMPORT SUBSTITUTION and has
the advantage that the business knows that there is a definite market for this product.
Example: Jeoff Read, Ballygowan (water).

ADVERTISING
Every day we come across many different advertisements in many different places.
Most of these advertisements aim to communicate information about a product or
service to the consumer.
Advertising is the communication of information about a product or service to the
consumer.

Purpose of Advertising
The following are the main aims of advertising:
To inform consumers of new products and services that are available, price
increases, special offers, or forthcoming events, for example a concert.
To persuade people to do something, for example buy a particular product.
To increase the sales and profits of a firm.
To keep a brand name in the public mind.
To increase their market share.

TYPES OF ADVERTISING
There are four types of advertising:
1.
Informative Advertising
These advertisements aim to give information about something to the public, for
example, health warnings, forthcoming concerts, end of year sales etc.
INFLUENZA VACCINE
Get the vaccine not the flu!

If you are over 65, living with a long term health condition or are a carer then remember
to get this years vaccine.
Make an appointment now with your family doctor GP).
2.
Persuasive Advertising
This type of advertising tries to convince or persuade consumers that they need a
particular product or service. For example, LOreal, the cosmetics manufacturer, uses
the slogan:
Because youre worth it
3.
Competitive Advertising
This type of advertising tries to make consumers purchase a particular brand of product
or service instead of a competitors brand, for example:
Would you swap two packets of brand X for one of Ariel?
4.
Generic Advertising
This is where the advertisement is taken out by an industry to promote the products of
particular firms. An example would be advertising by the National Dairy Council to
encourage people to drink more milk or advertising by Guaranteed Ireland Ltd. to
promote the buying of Irish goods.
Drink more milk

The AIDA Concept of Advertising

A good advertising campaign should:

Firstly get the attention of the potential customers

Then create an Interest in the product
This interest should then create a Desire to have the product
This desire should lead to Action, i.e. the potential customers should then buy the
product.

FORMS OF ADVERTISING
Advertising may take many forms, for example TV, radio, magazines, newspapers, the
Internet, cinemas, billboards, shopping bags, taxis, delivery trucks and buses.
Television
Television is the most expensive form of advertising. It also reaches the widest audience
since practically all households own at least one television. Advertisers will pick the
most appropriate time to put on their advertisement, i.e. when their target market is
watching. The big advantage of television is that is it possible to use sound and pictures
to explain and demonstrate products to the public during the advertisement.
Radio
Radio advertising is suitable for products and services that do not have to be
demonstrated. Radio advertising is cheaper than television and is available on both
national and local radio stations. Certain groups of people listen to the radio at
particular times and this is important for advertiser to know.
Outdoor Advertising
Billboard advertising (also called Hoardings) is common in cities and large towns. It
involves prominent positioning of the posters to catch the attention of moving
consumers, e.g. on a busy road or beside an airport. The advertisements are big and well
designed in order to be seen and understood.
Internet
Advertising on the Internet is now very popular as more and more people access the web
on a daily basis both at work and at home. Firms can advertise on their own websites an
on other websites that might be used by their target market. The advertisements can
contain words, moving or still graphics and sound.
Newspapers
Advertisements can be on any size from a small, classified advert to a full page.
Advertisers have a choice of national, regional and local papers depending on the type of
product or service they wish to advertise. Newspaper advertising is very effective as it
can reach a very wide audience. It is a cheaper form of advertising than television.
Magazines

Many magazines are aimed at a specialist market, for example teenagers, women, men,
farmers, sports fans etc. Advertisers will use magazines to advertise products or services
which would appeal to those people who read particular magazines. Because the
audience is smaller, advertising in magazines is cheaper that other methods of
advertising.
Merchandising
A form of point-of-sale advertising, i.e. advertising a product in the place (shop) where it
is being sold. It normally takes the form of a prominent display of the product in the
shop. Example: Cadbury display of Easter chocolates.
Regulation of Advertising
Advertising Standards Authority
The function of the Advertising Standards Authority is to promote and enforce the
highest standards of advertising in all means of communication throughout Ireland.
The code deals with such issues as legality, truth, decency and honesty in advertising.
According to the code:
All advertising should be legal, decent, honest and truthful.
All advertising should be prepared with a sense of responsibility, both to consumers and
to society.

SALES PROMOTION
Sales promotion refers to ideas used by firms to try and increase sales of a particular
product or service. They are usually short term promotions, i.e. gimmicks, operating
for a limited period of time. The aim of these promotions is to get consumers to buy the
products in the hope that they will continue to buy them once the promotion has ended.
Sales promotion refers to all ideas used by a firm to try to increase sales of a
particular product or service.
The most common sales promotion ideas are:
1. Free Gifts: These may be included in the packet or may require the consumer to
collect a number of tokens from the packet, which are then sent away to collect
the free gift.
2. Special Introductory Price: The product is sold at a specially reduced price at
the start before being increased to the normal price after the promotion has ended,
for example new magazines.
3. Competitions:
Consumers who purchase the product during the promotion
period have the chance to enter a competition for which there are usually very
attractive prizes.

4. Money-off Coupons: The product contains a money-off coupon which entitles

the consumer to their next purchase of the product at a reduced price.
5. Two for the price of one:
Here consumers are encouraged to purchase the
product by being offered two of them for the price of one.
6. Piggyback selling:
Here a new product is given free by being attached to a
related product. For example a new brand of baby cream may be attached to a
packet of disposable nappies.
7. Extra for free:
e.g. 50% extra free.
8. Free Samples
Normally given out at point of sale in the hope that the
consumer likes it and purchases it.
9. Blister Packs
Two or three of a product wrapped together and sold at a
special reduced price e.g. biscuits.

BRAND NAMES
Some manufacturers use a brand name and/or logo to make it easy for consumers to
identify their products. This means that they use a particular name on all the products
they produce, for example Kelloggs Cornflakes, Kelloggs Rice Krispies and Heinz
Baked Beans and Heinz Ketchup etc. Other brand names-: Google, Coca-Cola, Nike,
Sony, Disney, and NOKIA
Large retailers also use brand names to distinguish their own range of products from the
products of other manufacturers. Dunnes Stores use the St. Bernard brand while Marks
& Spencers use the St. Michael brand to identify their own products.
Manufacturers and retailers hope that by using brand names, people will associate
quality or good value with these products and future products of the firm. Brand
names are like reputations and must be built up over a long period of time.
Customers become loyal to a particular brand and it makes advertising easier.
Benefits of branding to the company:
Sales branding helps the sale of the product. The image and identity given to the
brand becomes associated with the product.
Promotion the brand can be used as the centrepiece in advertising and promotional
campaigns.
New Products It is easier to launch a new product on the market if it has a brand name
and also easier to get shelf space in stores.
Brand Loyalty branding promotes customer loyalty leading to increased sales and
profits.
Disadvantages of brand names:
1) Bad publicity can badly affect all the products/services under the brand name.
2) Some products/services may be overpriced in keeping with the brand name image.

Brand names can be legally protected by using a Trade Mark.

In 2005 Coca Cola valued their brand name at $62 million!

SPONSORSHIP
Sponsorship involves a firm paying money to have their name or products associated
with a well-known event or a famous person. The money is paid to the organisers of the
event or the person themselves. The firm hopes that they will get a lot of good publicity
for their product by having their name associated with a popular event or a successful
person.
The following are examples of sponsorship:
The Irish Rugby team is sponsored by O2.
The League of Ireland (soccer) is sponsored by Airtricity.
The Irish Open Golf Championship is sponsored by Nissan.
The All Ireland Football Championship is sponsored by Vodaphone, Centra, Supervalue,
Guiness, and Etihad Airlines.
The Young Scientists Exhibition is sponsored by Esat.

Public Relations
A good image is very important to a business. Most companies appoint a Public
Relations Officer (PRO), to ensure that the company obtains and keeps its good name.
The PRO organises open days, and good coverage in the media using press releases and
speaking to the media etc.
The PRO deals with:
Customer Complaints
Press Releases
Promotional Brochures (supporting the marketing department)
Sponsorship. E.g Aviva Stadium
Trade Fairs and exhibitions

Direct Marketing
This involves a business contacting potential or existing customers directly by phone,
mail or e-mail in order to sell goods or services.
Many businesses collect details of customers (such as name, address, phone numbers, email addresses, customer preferences) and then use this information to target customers.
They may also sell this information to other businesses.

Home and Away Enterprise Ireland A State Agency

As in the case of the home market, market research is also very important when
exporting. Enterprise Ireland provides a lot of information for the exporter
(Indigenous Companies Irish owned companies operating in Ireland) such as size of population, competitors, export regulations, etc. A business intending to export
must also carry out its own market research.

Classwork/Homework Questions on Marketing

1. Define Marketing.
2. Explain the term target market. Illustrate you answer with an example(s).
3. Name and explain the 4 Ps of Marketing/Marketing Mix.
4. Define Market Research.
5. Name and explain the two types of Research. Be sure to include advantages and
disadvantages in your answer.
6. Write a paragraph explaining Direct Observation.
7. Explain and illustrate the term Market Segmentation.
8. Define the term Advertising.
9. List the main aims of advertising.
10.Explain the term Generic Advertising. Illustrate your answer with an example.
11.What is meant by the term Hoarding?
12.Explain and illustrate the term Merchandising.
13.Give 4 examples of Sales Promotion techniques used by Business.
14.What is a brand name. Include advantages in your answer.
15.What does PRO stand for?
16.Record the following advertising payment:
On 1/10/12 Murdel Ltd. paid 5,000 by cheque to an advertising agency for its
advertising campaign.

Date
DR
Date

Details

Details

Analysed Cash Book (credit side)

F
Bank
Advertising
Advertising A/C
F

Date

CR
Details

Recording the Payment of Advertising

Double Entry Book-keeping
Every transaction has two aspects: one is the giving aspect, the other is the receiving
aspect.
Double entry book-keeping means recording both aspects of the transaction.
Every account has two sides: a debit side (DR) and a credit side (CR).
One part of the transaction will be recorded on the debit side of one account and the
other part on the credit side of another account.
Therefore every debit entry will have a corresponding credit entry.
The rule for recording a transaction is:
Debit the receiver or thing received.
Credit the giver of thing given.
A business will record the payment of advertising in the analysed cash book and in the
general ledger
Example
First Choice Limited paid 4,500 by cheque for advertising on 23/4/11. This payment
will be recorded as follows:

Date
23/4/11

Details
Advertising

Analysed Cash Book (credit side)

Or
Bank Account
F
Bank
Advertising
GL1 4,500
4,500

DR
Date
23/4/11

Details
Bank

Advertising A/C
F

Date
ACB 4,500

CR
Details

Second Year Test MARKETING Each Q 10M

NAME:

_____________________________

Q1.

What is meant by the term marketing?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Q2.

What is meant by the term Target Market?

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Q3.

Name and explain the Four Ps of Marketing.

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Q4.
Explain Desk Research giving advantages and disadvantages.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Q5.

Name and explain two types of Field Research.

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
Q6.

Explain what is meant by Informative Advertising.

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Q7. Name and explain two suitable advertising media to advertise the sale of Louth
Jerseys for a retail shop in Dundalk.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

Q8.

What is meant by the term Brand Name? (Include advantages of having

a brand name in your answer.)
Give two examples of well known Brand Names.

_______________________________________________________________________
_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
9. Give four examples of Sale Promotion used by businesses.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
10. Explain your understanding of the term market segmentation.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________

MARKETING MIX (The 4 Ps)

FOR THE APPLE iPHONE
PRODUCT
Product is what the consumer buys to satisfy certain
needs. Firms should apply the marketing concept and
conduct market research to find out which products
consumers desire.
For example, Apple developed the iPhone, a phone with
a widescreen iPod, a high quality digital camera, touch
screen and internet browser, to tap into the mobile
phone market. It is aimed at high earners that want an
all in one device (USP) Unique Selling Point.
PRICE

Price is the amount of money a firm charges for its

product. The price of a product -:

Influences sales

Earns the firm profit

Reflects the products image

For example, the iPhone is aimed at high earners that

want the latest must have gadget and employs a
premium pricing strategy. When launched, the phone
itself cost 500 and a minimum 18 month contract was
an additional 45 per month.
PLACE
Place refers to the way a firm distributes its products to
consumers. It often involves a range of distribution
channels that are used to make sure the product is easily
available to consumers.

For example, Apple decided to use the following

distribution channel selling exclusively through O2 in
Ireland:
Producer: Apple ______Agent: O2 ______Consumer
PROMOTION
Promotion refers to the range of activities employed by
a firm to try to influence consumers to buy their
product. It includes methods such as advertising, PR,
sponsorship and merchandising.
For example, apple used the following methods to get
their product known:

Pre-launch publicity campaign

Press releases in National Newspapers

Publicity through O2

Cinema Advertising

EVALUATION

Overall, Apple had a good marketing mix that allowed

them to make a huge profit on their product.