Lesson 1: Introduction to marketing

Marketing is the process of trying to attract or win customers to purchase products or services.
A marketing method must be supported with the right message to target the right consumer
group.
In order to do so, there are marketing principles, standards and best practice that needs to be
understood to profile and segment consumer groups, to ensure the marketing methods are
successful.

Student activity: Task 1

Students are required to answer the following on relevant legislation, marketing principles, product
and service standards and best practice models to demonstrate the underpinning knowledge on
marketing activities and strategies.

1. Explain the difference between the needs, wants and demands of customers.
The easiest explanation of the concept “needs” is the basic human requirements like shelter,
clothe, food, water, etc.These are essential for human beings to survive.
Basically, things that we can associate with “needs” don’t require a boost because these are
the products and services people always buy

In addition, needs aren’t only physical. Needs can be a social thing, for example, social class,
belonging to a certain society and need of self-expression.
For example, if we always manage to satisfy our wants, it transforms into a need.

2. What are trends?

A trend is what's hip or popular at a certain point in time. While a trend usually refers to a
certain style in fashion or entertainment, there could be a trend toward warmer temperatures
(if people are following trends associated with global warming).

A trend simply reflects what seems to be going around at any given time. A trend can be in
any area and doesn't only reflect fashion, pop culture and entertainment. There can also be a
trend in the stock market to be bullish or bearish, depending on economic indicators, or a
political trend reflecting a nation’s current mood. Some trends are fun, some fabulous, some
appalling, but however long they last, you can be sure there will always be a new trend
coming along to replace the old.

3. What are the descriptive and behavioural bases for segmentation?

The descriptive bases for segmentation are around the target audiences gender and age,
whereas behavioural bases are more around what their occupation or hobbies are and where
they spend their time.

4. List some legislations that marketers need to adhere to.

Privacy Law
Anti-discrimination law
Consumer Law
Environmental Law
 IP Law
5. Explain the role of market segmentation.
Market segmentation is an important basis of many successful marketing strategies. Carefully
chosen segments allow tailoring the marketing mix to more individual customer needs. Thus,
they help to invest marketing spending more effectively.

6. Explain four (4) requirements for effective market segmentation.

- Your segmentation needs to cover a reasonable market – not too big that you cannot
service it but not too small that it the sales of the product don’t cover the cost of the
marketing of it
- When deciding who the segment are – they need to be a reachable audience
- The segments need to be distinguishable so that they can easily be understood and
clear cut from other segments
- Quantifiable; the characteristics must be easily measured

7. Describe the four (4) steps of the marketing segmentation process.

Collect The Required Data
Choose The Segmentation Criteria
Segment Through Cluster Analysis
Profile The Outcome-Based Segments

8. Explain ‘Marketing Mix’.

Marketing Mix – ProductMarketing Mix Product
A product is an item that is built or produced to satisfy the needs of a certain group of people.
The product can be intangible or tangible as it can be in the form of services or goods.

9. List and describe where marketers can source information for marketing activities, including
qualitative and quantitative data.
Quantitate – information on qualitative data can be found within google analytics, google
trends, sales figures, re-order rates
Qualitative – information on quantitative data can be found within reviews, feedback from
consumers/customers, questionnaires, word of mouth

10. What are the 4 P’s in marketing?

Product – what is the product

Place – how will the product be placed, i.e. location and actually within the market
Price – where will the product be priced
People – who are you targeting with this product