Unit 4: Marketing

4.1 The role of marketing

• Marketing and its relationship with other business functions

• The differences between marketing of goods and marketing of services

• Market orientation versus product orientation

• The difference between commercial marketing and social marketing

• Characteristics of the market in which an organization operates

• Market share

• The importance of market share and market leadership

• The marketing objectives of for-profit organizations and non-profit organizations

• How marketing strategies evolve as a response to changes in customer preferences

• How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an organization

4.2 Marketing planning (including introduction to the four Ps)

• The elements of a marketing plan

• The role of marketing planning

• The four Ps of the marketing mix

• An appropriate marketing mix for a particular product or business

• The effectiveness of a marketing mix in achieving marketing objectives

• The difference between target markets and market segments

• Possible target markets and market segments in a given situation

• The difference between niche market and mass market

• How organizations target and segment their market and create consumer profiles

• A product position map/perception map

• The importance of having a unique selling point/proposition (USP)

• How organizations can differentiate themselves and their products from competitors

4.3 Sales forecasting (HL only)

• Up to four-part moving average, sales trends and forecast (including seasonal, cyclical and random variation) using given data

• The benefits and limitations of sales forecasting

4.4 Market research

• Why and how organizations carry out market research

• The following methods/techniques of primary market research: surveys, interviews, focus groups, observations

• The following methods/techniques of secondary market research: market analyses, academic journals, government publications, media articles

• Ethical considerations of market research

• The difference between qualitative and quantitative research

• The following methods of sampling: quota, random, stratified, cluster, snowballing, convenience

• Results from data collection

4.5 The four Ps (product, price, promotion, place)

• Product

  • The product life cycle

  • The relationship between the product life cycle and the marketing mix

  • Extension strategies

  • The relationship between the product life cycle, investment, profit and cash flow

  • Boston Consulting Group (BCG) matrix on an organization’s products

  • The following aspects of branding: awareness, development, loyalty, value

  • The importance of branding

  • The importance of packaging

• Price

  • The appropriateness of the following pricing strategies: cost-plus (mark-up), penetration, skimming, psychological, loss leader, price discrimination, price leadership, predatory

• Promotion

  • The following aspects of promotion: above the line promotion, below the line promotion, promotional mix

  • The impact of changing technology on promotional strategies (such as viral marketing, social media marketing and social networking)

  • Guerrilla marketing and its effectiveness as a promotional method

• Place

  • The importance of place in the marketing mix

  • The effectiveness of different types of distribution channels

4.6 The extended marketing mix of seven Ps (HL only)

• People

  • The importance of employee–customer relationships in marketing a service and cultural variation in these relationships

• Processes

  • The importance of delivery processes in marketing mix a service and changes in these processes

• Physical evidence

  • The importance of tangible physical evidence in marketing a service

  • The seven Ps model in a service-based market

4.7 International marketing (HL only)

• Methods of entry into international markets

• The opportunities and threats posed by entry into international markets

• The strategic and operational implications of international marketing

• The role of cultural differences in international marketing

• The implications of globalization on international marketing

4.8 E-commerce

• Features of e-commerce

• The effects of changing technology and e-commerce on the marketing mix

• The difference between the following types of e-commerce: business to business (B2B), business to consumer (B2C), consumer to consumer (C2C)

• The costs and benefits of e-commerce to firms and consumers