Handout

Grade: 11
Unit: Marketing
Specific Objectives:
1. Explain the concepts of market and marketing.
2. Explain marketing activities.
3. Describe methods of promoting sales.
4. Describe the “marketing mix”.
5. Describe the factors that influence consumer behaviour.
6. Identify factors affecting packaging and presentation of goods.
7. Identify the techniques of selling.
8. Explain the various terms of sales.
9. List the functions of consumer organisations.
10. Outline the role of customer service.
11. Describe forms of customer service.
12. Explain the concept of intellectual property rights.

Difference Between Market and Marketing

A market is any space within which trade takes place between buyers and sellers for a well defined product.
This space can be a produce market, a shop, internationally between countries or over the internet.
Types of Market Structures
The term market structure refers to the level of competition experienced by businesses in an industry. This
factor determines the nature of the product sold, how easy it for new businesses to enter that industry and the
amount of information available concerning that industry.
Monopoly
A monopoly exists when only one supplier has control over an entire market for a particular good or service.
Examples of monopoly in Caribbean countries are a single electricity and water supplier which may be owned
by the government or a private company. The monopolist sells a product for which there are no close
substitutes. The monopolist controls the market because it is difficult for other firms to enter such industries.
The challenges include high start-up costs and difficulty in obtaining strategic raw materials or information
regarding business operation. The monopolist has great market power and can therefore set the price of products
sold in the market.
Oligopoly
Oligopoly describes a market structure in which there are few large firms. They offer the same product for sale
and compete aggressively for market dominance. Examples of firms in this market structure are
telecommunications and petroleum companies. Entry into this industry is also difficult as start-up costs are very
high, there is control of strategic raw material and information is not easily available.
Perfect Competition
This market structure is characterized by many buyers and many sellers of a product. The product is not unique
as it is available from many sellers. Firms in this market structure are price takers as they cannot sell above the
price of their competitors. Firms must accept the market’s price as there are several competitors. There is
perfect knowledge about the business and there are no barriers of high start-up cost and control of strategic raw
materials.
Monopolistic Competition
Similar to perfect competition this market structure involves many sellers. However, this market structure
differs from perfect competition in that each firm sells a branded product. Firms in this market structure are a
monopolist for their brand. There is freedom of entry and exist into the industry as there are no barriers such as
strategic raw material, very high start –up cost and lack of information.
Marketing is all those activities that facilitate trade. These include activities that identify consumers’ needs such
as market research and those activities that satisfy consumers needs e.g., packaging and distribution. Marketing
activities therefore support the marketing of goods and services.
New trends such as Social media marketing and integrated marketing are becoming more prevalent. Social
media marketing is the use of social media platforms and websites to promote a product or service. Integrated
marketing is an approach to creating a unified and seamless experience for consumers to interact with the
brand/enterprise. It attempts to combine all aspects of marketing communication such as advertising, sales
promotion, public relations, direct marketing and social media through their respective mix of tactics, methods,
channels, media and activities so that all work together as a unified force. It is a process designed to ensure that
all messaging and communications strategies are consistent across all channels and are centered on the
customer.
Marketing Activities
1. Market research
2. Packaging
3. Branding
4. Pricing
5. Advertising
6. Distribution
7. Sales promotion
1. Market Research
Market research investigates what consumers are buying or are likely to buy in the future. Market research has
three broad aims:
1. To find out what consumers want — so that a business does not waste resources producing goods or services
that are not required.
2. To assess likely demand to ensure over-producing does not occur.
3. To discover what will influence consumers — product name, style and colour of packaging, best target
audience, acceptable price range, effective 'hidden persuaders' and soon.
Consumers differ in their preferences — this is called consumer taste. Market research aims to identify and rank
subjective individual choices. They can do this by presenting consumers with bundles of goods or their
characteristics and getting them to rank them in order of preference.
Businesses are strongly affected by competition. For example, if competitors are marketing a similar product or
service, this influences the price that can be charged, and also the need to ensure the quality of the product or
service is comparable if not better. This will influence the firm's marketing strategy, perhaps indicating a need to
tweak its marketing plan.
Market research is the process of gathering information about potential customers. Market research is the
gathering, recording and analysing of data to address the marketing problems of a business. Market research
must be specific to the problem of a business. The marketing problem must therefore be clearly identified so
that the appropriate market research may be conducted.
Types of Market Research include:
1. Consumer Research – garners information on consumers’ feelings, thoughts and reactions towards a
company’s good or service.
2. Product Research – determines customer acceptance of the product.
3. Distribution Research – used to identify the most suitable channel of distribution for particular products.
4. Advertising Research- Identifies the most suitable media to present the advertising message.
The Market Research Process - This consists of five steps:
1. Identifying or defining the problem.
2. Developing information sources.
3. Collecting the information.
4. Analysing the data by using charts and graphs
5. Presenting the findings.
Reasons for Conducting a Market Research
Market research provides managers with current, relevant, accurate and reliable information concerning
competitors, advertising, distribution and potential and loyal customers. Research is done to assess consumer
taste, level and types of competition as well as what influences consumer behavior towards a particular product
or service.
2. Packaging – creating a suitable package for product usage and for advertising. Packaging refers to designing
and producing the container that holds the product. A good package must identify, protect and advertise the
product. It must also make the product convenient to use. Therefore products such as toothpaste are best
packaged in a tube as it has to be squeezed out. Milk must be pored from its container. Egg containers are so
shaped to hold them securely.
A package must also sell the product. It must first attract customers to buy. It must provide information about
the product i.e. ingredients, amount of contents, price, the name and address of the manufacturer and
instructions for usage. The brand name is also displayed on the package.
3. Branding – helps with differentiating the product of a company from other brands and establishing loyal
customers. A brand is any identifiable feature of a product which makes it different from its competitor. A
branded product will increase the value of the product in the eye of the consumer.
A brand may be a name, term, symbol, design or combination of these. Examples of brand names include:
Avon and Colgate. A tick brand symbol is an e.g. which represents the Nike brand.
Copyright, Patent & Trademark
 Copyright is a form of intellectual property right that legally protects the creators and innovators of
original works. Copyright protects creators’ expressions such as music, painting, movie, photograph,
writings etc. Individuals who wish to use works that are copyrighted must request permission from its
creator. Copyright law allows creators of original work to be paid for them. Other forms of intellectual
property rights are patents and trademark.
 Patent protects innovation. It excludes others from making and selling that invention for a number of
years.
 Trademark legally protects brand names. It gives the seller exclusive rights to use a particular brand
name.
4. Pricing - identifying the right price that will encourage sales.
5. Distribution - methods used to make the product available to consumers. For example wholesale, retail or
internet.
6. Sales promotion – short-term methods used to encourage consumers to buy during a specified period. It is a
marketing strategy that is used to induce customers to buy immediately.
Examples of sales promotion methods are: a. A sale on items, b. Bargain packs, c. Coupons, d. Games, e.
Contest, f. Trading Stamps
7. Advertising is any paid form of non-personal presentation by an identified sponsor. Functions include:
 To announce new products
 To highlight the unique features of a product.
 To build a firm’s image around its products.
 To highlight special events.
 To increase market share by stimulating demand.
 To educate consumers about the product.
Types of Advertising
Informative advertising
Gives detailed information about the goods or services available and leaves customers to decide whether or not
they wish to purchase that good or service.
Persuasive advertising
Is clearly designed to entice a potential customer to purchase a good or service using a variety of psychological
devices. Some of the motives for persuasive advertisements are: Appeal, Ambition, Social acceptability, Work
simplification, Health.
Competitive Advertising
The producer tries to gain market share by highlighting good points about his product and comparing these with
his competitors.
Defensive Advertising
Reacts to competitive advertising to maintain its market share and reflect criticism of a popular brand.
Reminder Advertising
This is used when an advertising campaign has peaked and instead of running the full advertisement, only a
small recognizable part of it is played or shown to remind customers.
Collective, Generic or Cooperative Advertising
This aims to get the public to buy a product in general without focusing on a particular brand.
Methods of Promoting Sales
Promotion includes all forms of advertising, public relations, sales promotion and personal selling.
Advertising
Promotion including (i) trading stamps and coupons, loyalty points, rebates, bundling; and, (ii) loss leaders (iii)
social media.
Coupons - These are printed in the daily newspaper or magazines. The holders of coupons are allowed a
discount on the items bought.
Trading Stamps - These are given to purchases with each item bought. Booklets filled with these stamps may
be returned by customers for goods, services or money in exchange.
Loss leader – This is a product that is in high demand and is therefore used to attract consumers to a business
location by cutting its price very low. The business uses a loss leader to attract a large number of persons to its
location so that other items will be sold. The profits lost on this product will be made up on the high sales
turnover of the other products that will be bought along with the loss-leader.
Public relations including business entertainment and the offering of special awards and sponsorship. Public
relations activities are aimed at creating a favorable impression of a business in the eyes of the public. Public
includes its customers, its suppliers, the government and the surrounding community. Public Relations activities
include sponsorship of local sporting events, press conferences, and donations to charity.
Sales promotion
Personal selling

Marketing Mix
The marketing mix principles are controllable variables which have to be carefully managed and must meet the
needs of the defined target group. All elements of the mix are linked and must support each other.
The marketing mix also referred to as the 4 Ps of marketing, categorizes all the various strategies used in the
marketing of goods and services. These categories are product, promotion, pricing and place.
(1) Product this includes product designing, packaging, labelling and branding.
(2) Promotion advertising, public relations and sales promotions.
(3) Pricing includes various pricing strategies and methods.
(4) Place distribution of products.
(recently 7ps…people, process, physical evidence)
Product this includes product designing, packaging, labelling and branding.
We must remember that Marketing is fundamentally about providing the correct bundle of benefits to the end
user, hence the saying ‘Marketing is not about providing products or services it is essentially about providing
changing benefits to the changing needs and demands of the customer’ (P.Tailor 7/00)
Pricing is the only mix which generates a turnover for the organisation. The remaining 3p’s are the variable cost
for the organisation. It costs to produce and design a product, it costs to distribute a product and costs to
promote it. Price must support these elements of the mix. Pricing is difficult and must reflect supply and
demand relationship.
Pricing Strategies- 1. Penetration, 2. Skimming, 3. Competition, 4. Product Line 5. Bundle 6. Psychological, 7.
Cost-Plus
Promotion
This refers to ways in which consumers are made aware of the availability of the product or service and the
qualities it has. Advertising, examined earlier in this chapter, is an important aspect of promotion.
Sales promotion is any activity that supplements advertising and other aspects of visual promotion. The
following are just a few of the strategies used in sales promotion.
A successful product or service means nothing unless the benefit of such a service can be communicated clearly
to the target market. An organisations promotional mix can consist of: Advertising, Public Relations, Sales
Promotion, Personal Selling, Direct Mail, Internet/E-commerce.
Place
If it is to be successful, a product must be distributed in a place that is conveniently accessible to potential
purchasers. In order to identify this 'place', those marketing a product or service need to identify not only the
right place, but also the appropriate distribution channels that link with the target market. Getting the product to
this convenient place is not only reliant on distribution, but also transportation. This involves the business
making decisions not only regarding the place to get the product to, but also the transportation costs. For
example, transportation costs are usually much higher to overseas destinations than to home ones, and factors
such as these influence the eventual selling price. Direct distribution ( Manufacturer  Consumer) Indirect
Distribution ( Manufacturer  Retailer  Consumer)

Factors That Influence Consumer Behaviour

The following factors will cause consumers to either increase or decrease their demand for a product.
1. The price of a commodity - Consumers can afford to buy more of a good when its price falls and less
when its price rises.
2. Taste and Preferences- A change in consumers taste for goods and services will impact their demand..
For example, changes in fashion will result in a drastic decline in demand for an out going fashion and a
rise in demand for what is trendy.
3. Expectations of a future Rise in Price - If consumers expect the price of a commodity to rise in the near
future, they will try to purchase more now, before the price increases.
4. The prices of other goods and services (substitutes and complements)
 Substitute products are those that can be used alternatively as they satisfy the same need for a
consumer. For example, a weekly shopper may decide to purchase fish instead of chicken
because the price for fish has fallen significantly less than the price of chicken. Therefore either
fish or chicken will be adequate for dinner. If by the next week the price of fish rises and
becomes more expensive than chicken then the consumer will opt for chicken.
 Complements are goods that are used together e.g. bread and butter. If the price of butter rises
then its demand will fall and so will the demand for bread. Conversely if the price of butter falls,
its demand will rise and so too will the demand for bread.
5. Income of consumers - As income level rises consumers will demand more goods and services.
6. Brand Loyalty - This will ensure a continuous demand for a product regardless of changes in its price or
the prices of other goods and services.
7. Spending Patterns - Consumer spending surveys compile information on consumer spending patterns
based on income levels. This informs businesses of what goods and services are in demand.
8. Changes in the size of the population - A population decline will cause demand to fall in a particular
region. One reason for a population decline in a region is migration.

Selling Techniques - refer to the methods that those engaged in selling use to make potential customers
aware of the product or service they are selling, and give them the information they need in order to make a
purchase. Selling techniques are more than advertising. They cover the ways that salespersons engage with
potential customers and encourage them to buy. Selling techniques include (a) salesmen and their
approaches; (b) merchandising and adjusting of pricing policy; and, (c) methods of retailing: shops,
department stores, mail order, ecommerce, tele-marketing, vending machines.
1. Salespersons and their approaches - So, what's hot and what's not? Well certainly cold calling (trying
to sell to unknown people), or telemarketing, has become one of the most unpopular approaches to
 selling, and in many cases it has become counter-productive as it loses as many potential customers as it
gains. It's certainly not a hot favourite.
Warm calling (contacting known people) is less invasive, and specifically targeted; for example, making
contact with people who use social media and who have already revealed something about their interests.
However, it is difficult to quantify how effective it is.
There are a variety of other approaches to selling, and some are the same thing by a different name. The
following are a selection of techniques:
 Hard selling consists of high-pressure tactics to sell something that may not even be needed. It works on
some people, but many recognise a hard sell and object to it.
 Soft selling is appreciated by many customers, particularly when they just need some guidance in deciding
between some alternatives. The seller may still use gentle personal persuasion to convince the buyer but this
is kept low key.
 Consultative selling is quite essential when it comes to highly technical products, but honest and
knowledgeable comparison is often highly valued. A sound relationship between the seller and the buyer is
established through confidence in the knowledge of the seller.
 Solution selling involves helping buyers to choose the right product (for example, a new car or a speciality
gift) by listening to the customer, recognising their dilemma and unobtrusively helping them to make the
right choice for their circumstances.
 Customer personality selling uses sales techniques that focus on the different types of customers, for
example those that are assertive and know what they want (so let them have it), and those who appear
friendly (and may seem easy to sell to) but may not reach a final decision because they feel too embarrassed
to say, 'No that's not what I want.'
2. Merchandising and adjustment of pricing policy - Merchandising is the activity of promoting the sale
of goods, particularly in the retail sector. It includes techniques of display but also involves pricing
decisions such as offering free samples and special offers such as sales promotions. These require price
adjustments, for example a special offer involves a price reduction, and at the end of the sales promotion
there will be a corresponding price increase. But there are many other situations requiring price
adjustments:
Internally influenced price adjustment
 'Poor inventory control or ordering malfunctions could result in stocking
 Packaged stock, or stock nearing sell-by
 Items must be discounted to move extra stock quickly
 The price must be reduced to sell quickly

Externally influenced price adjustments

 Competitors reduce their prices

 Customers change their buying habits
 Technology changes lead to new products
 Prices are reduced to remain competitive and maintain market share
 Prices are reduced to make room for new stock to meet changed demand
 Prices must be lowered so that they will soon shift stock to be replaced by newer technology
Types of price adjustments
There are two types of price adjustments: mark-downs and mark-ups
 Mark-downs — a reduction in the product's price — result in a reduction in the profit margin of the product
but are useful in moving the flow of stock, and increased sales can offset losses in profit margins.
 Mark-ups — an increase in the price — can lead to greater profit margins, but can result in a reduction in
sales volumes.
3. Retail methods - Shops can take many forms and be involved in different specialisms.
Independent shops are not attached to a large organisation and for this reason are referred to by a variety of
names, including 'sole trader', 'corner shop', 'unit shop' and 'convenience shop'. They tend to be owned by
one person, or a partnership, and may specialise in a particular type of product, such as hardware, electrical,
bakery, fruit and veg and so on.
 Multiples (chain stores) are a chain of shops that are all owned by one company. They are generally
controlled from a central headquarters and are often sited in town centres and shopping precincts.
Supermarkets are large retail stores that are also often part of a multiple chain. They hold a wide range of
products and feature self-service facilities, shopping trollies and multiple check-out points. The provision of
shopping trollies reduces
department stores,
mail order,
e- commerce,
tele-marketing,
vending machines.
Terms of Sales- refers to the ways that payment for purchases are made. While many of your personal
purchases will be paid for in cash or by cheque, you will already be aware that there are many other ways of
making purchases:
 Cash is obviously a convenient method of paying for purchases in the home country and even when
travelling overseas because it is always acceptable. Similarly, paying by cheque is generally accepted, if
guaranteed by a cheque guarantee card. However, for more costly purchases cash is not generally used.
 Credit is a financial facility which allows a person to have time in which to make payment — this is known
as delayed payment. In this respect 'credit' has a variety of forms. For example, one business may give
another time to pay (called trade credit) whereby the customer is given, say, one or two months in which to
pay for purchases. Similarly, a consumer may use a credit card to make purchases where they are given 28
days to make the actual payment to the credit card company, after which there is a charge of interest (the cost
of borrowing).
 Hire purchase (also called instalment credit) is a contractual means of purchasing goods over a period of
time. This facility is provided by specialist financial institutions or even the business selling the product
concerned (usually consumer durables). An initial down payment (a deposit) is often required followed by
monthly fixed payments, including interest charges.
 Layaway is a purchasing arrangement whereby a seller reserves an item in storage for a consumer for a
period, and until they have fully paid the amount owed. In other words, the buyer does not receive the goods
until they are completely paid for. The business takes no risk because even if the buyer faits to complete all
the payments the seller retains the goods.
 A cash discount is a reduction in the total amount owed by a customer to a seller in return for prompt
payment. They are used by sellers to encourage customers (who are often other businesses) to pay quickly
and improve the firm's cash flow. A trade discount is a discount given to a customer in the same trade as the
seller to enable them to make a profit on resale. A quantity discount is a reduction given by a seller to a
purchaser to encourage purchases in bulk (large quantities), and calculated in accordance with the quantity
bought.
 Consignment is an arrangement whereby goods are placed in the possession of another party to sell. This
person, known as the consignor, receives a percentage of the revenue from the sale. For example, works of
art and fashionable products may be placed in the possession of a specialist to sell. Consignment is also
evident in international trade, whereby the payment is only passed to the exporter after the goods have been
sold by the overseas distributor to the end customer.

Consumer Organisations
Need for consumer protection - The term consumer protection refers to the ways that consumers are
safeguarded when making purchases. Specifically, it means the laws and agencies that help to protect the
rights of consumers as well as encouraging fair trade and accurate information when purchasing goods or
services. With the expansion of global trading, the need for consumer protection is more important than
ever, but more complex to enforce.
When consumers buy goods and services they can be exploited in the following ways:
 Advertisements can be misleading and make false claims a Incorrect weights and measures may be given
 Goods can be incorrectly labelled
 Businesses may act together to charge higher prices
 Credit arrangements may not be clearly defined
 Health issues may be ignored in a bid to make a sale
 The need for protection from hazards may not be recognised.
Sometimes consumers need protection from themselves because they are not always as knowledgeable or as
careful as they should be. Consumer associations help to make consumers aware of what they should do in
order to be 'wise buyers'.
Consumer Rights
In order to make an informed decision, consumers have the right to be fully aware of what they are buying.
Products should be safe and healthy, and the price should be clear and unambiguous. Sellers should provide
sufficient information on labels and other descriptions, including verbal advice. Only with these provisions
can the consumer make an informed decision. When these rights are breached, consumers should have their
problems addressed, whether they have purchased goods or services. The main rights of consumers are that
goods and services should be:
 accurately described
 fit for their normal purpose (of merchantable quality)
 fit for their intended purpose.
Consumerism
Consumerism is an organised movement with policies that aim to protect the interests of consumers by
forcing businesses to behave in a socially acceptable manner. This movement has encouraged businesses
worldwide to use 'honest packaging' and advertising, give more transparent guarantees and improve safety
standards. The regulations that implement consumerism may be statutory, institutional or embedded in a
voluntary code of practice accepted by a business or a particular industry. In short, we can say that
consumerism aims to protect the interests of consumers by:
 raising consumer awareness
 forcing businesses to behave in a responsible manner.
Heightened consumer awareness and protection have arisen as a result of the increased complexity of
products and services and a growth in pressure from marketing forces. Progress has certainly been made in
addressing these problems, but the Latin term caveat emptor, 'let the buyer beware', is still important and
buyers must be vigilant when making purchases.
Private Organisations Protecting Consumers
Consumer organisations work at both local and a nationwide level aiming to protect the interests of
consumers from marketers. They identify and publicise unsafe products, false advertising and pollution.
They highlight inferior products or services, and also aim to raise awareness of consumer rights.
Manufacturers' associations provide a forum for the exchange of information between member
companies, an example of which is the Citrus Growers Association. These associations have a number of
aims, but an important one is to create and enforce codes of practice that are to be followed by their
members. In this respect the trade association acts as a focal point for dealing with consumer complaints as
well as promoting goodwill for all its members.
Government and Consumer Protection
All governments recognise the need for consumer protection and implement a wide range of legislation
controlling the sale of goods, trade descriptions, weights and measures, product safety, consumer credit and
much more. We cannot examine all of these in full here, but we will take the Sale of Goods Act as an
example of the implications of such legislation.
The act covers all goods (including food) bought from a trader through a shop, a doorstep seller, by mail
order, telephone and so on. The seller has three main, clear obligations: provide goods that are of
merchantable quality, as described and fit for purpose.
With the rapidly expanding global market and the explosion of e-commerce, the whole scene of consumer
protection has moved into a different sphere. Even goods bought in from overseas are expected to meet local
requirements, but it is enforcing those requirements that has become a new challenge for governments and
consumer bodies around the world.
The Bureau of Standards
Many governments have a Bureau of Standards that are charged with identifying minimum requirements or
standards that producers must adhere to if their products are to be acceptable in the market. Typically, the
bureau will ensure that goods produced and sold are in good condition and are appropriately packaged and
labelled.
In some countries other government departments will take on some of the roles of the bureau but there is a
unified standard that all must comply with and that is those of CARICOM and the World Trade
Organization (WTO).
The WTO is the only global organisation dealing with the rules of trade between nations. It is in effect a
debating forum that has established WTO agreements negotiated and signed by most of the world's trading
nations and ratified in their parliaments. These agreements provide the ground rules for international
commerce and so, of course, they are a major influence on standards and trade throughout the world. The
rules the WTO establish help producers and exporters and importers identify the rules and standards to
which they must comply.
The Ombudsman
Although the term 'ombudsman' may give the initial impression it is one person, it is in fact a collective
name for many. The ombudsman is in effect an independent but government-appointed position. Many
specialist persons are appointed to investigate and adjudicate on a variety of issues that the consumer has
been unable to resolve through the normal channels, for example malpractice. This includes complaints
related to government departments and government agencies as well as those in competitive commercial
trade.
These appointed persons have specialist skills related to the specialist areas they attend. For example, there
will be a financial ombudsman whose office investigates unresolved issues such as unfair charges for credit,
or disputes over investments.
Consumers who have tried unsuccessfully to resolve issues such as those related to the sale of goods can
take their complaint to the office of the appropriate ombudsman. The complaint will be investigated by that
office and a ruling will be given that must be accepted by both parties. If the office of the ombudsman finds
that a complaint is valid, then the complainant will be compensated. The service is completely free, but
cannot be used frivolously, and the complainant must have made serious and recorded attempts to resolve
the issue first.
Customer service
Customers are important to every business because they are their life blood; their source of income on
which the business depends. Customer service (sometimes referred to as customer care) is an important
aspect of marketing because it gives the business the opportunity to improve its reputation with the
customer. It is an opportunity to develop customer loyalty and customer satisfaction.
When a customer visits a shop, for example, the visit can be enhanced by receiving help and advice about
the properties of alternative choices of products, but without being put under pressure to buy. Unhappy
customers will not repeat buy from a trader who has caused them to be unhappy. So what can businesses do
to make a customer happy? A number of options are available, ranging from good customer and after-sales
service, to product warranties and various channels through which customers can communicate with the
company.
 Persons working in customer service that are of a high caliber, are patient and have good
interpersonal skills go down well with customers.
 A warranty is a written guarantee or promise, issued by a manufacturer or the seller, promising to
repair or replace an item within a specified period of time. It is important that the promise is
honoured and is 'pain free' to support customer satisfaction.
 After-sales service refers to the help and information provided to customers after they have bought a
good or service. A business that provides this is more likely to receive repeat business, but even
more importantly, the customer will be more likely to recommend the seller to others — 'word of
mouth' recommendation is very powerful!
 Customer feedback is important because it provides a business with information that enables them to
improve the business' services or the products it sells.
 Online chat provides a way for consumers to 'talk' with someone about difficulties they are
experiencing with products they have purchased, often impersonally, for example online. It is an
opportunity for the trader to say, 'We care. How can we help you?'
 Toll-free call centres can be a valuable asset in marketing if it results in customer satisfaction. It is an
opportunity for customers to make contact easily and get their questions answered. However, it can
prove counter-productive if calling such a number or centre results in the caller being put on hold for
a long period of time.
 Suggestion boxes can be positioned prominently in the premises of the business or gathered online.
They provide an opportunity to find out information from customers that can indicate how the
business can improve its products or the support it provides. It is also another opportunity to
 demonstrate to customers that their views are of interest. Even employee suggestion boxes can
identify ways to improve customer experience.
Customer surveys aim to find out how satisfied customers are, and to identify how the business needs to
improve. The surveys can be carried out on the business premises (or even in street surveys) but they are
increasingly carried out online. The secret of good customer surveys is to make them meaningful but quick
and easy to complete.
Intellectual Property rights
An entrepreneur may have created an idea or product that they want to protect or regulate its use by others,
and legislation provides this protection. There are four main ways of protecting intellectual property rights:
1. Trademarks are words, letters or symbols (for example, a logo) that are associated with a particular
company or product. Company names, team emblems and label designs are typical examples of the use of
trademarks. A trademark can be a valuable tool in the marketing of products because many become famous
throughout the world. Once a trademark is established it is a simple matter to just display the trademark to
make an association between it and the company's products or services.
2. Copyright refers to the legal ownership by persons of certain kinds of material, particularly literary,
dramatic and artistic work. The law gives legal rights to creators of copyright material so that they can
control the ways in which their work is used and against unauthorised copying of such material. Copyright
protection is automatic and there is no registration process or any other formality. At the beginning of this
book you will see the copyright is indicated by the sign ©. If the copyright is infringed, the copyright owner
can seek an injunction through the courts and claim damages from the offender.
3. Patents are a grant of rights to a person or a business in respect of an invention of an entirely new product
or process. The granting of a patent can give a patentee a monopoly to make, use or sell the invention for a
minimum of 20 years.
4. Industrial design refers to a new registered design that has a distinctive visual appearance or properties
that may be registered prior to its actual production. It is usually associated with products that are to be mass
produced. The design of a product influences consumers to buy it because of its unique features. The owner
of a registered industrial design (or of a design patent) has the right to prevent others from making (or
selling) articles that incorporate the design in other products.