Topics Marketing (0450 IGCSE Syllabus for 2025 May June examination)

3.2 Market research

3.2.1 The role of market research and methods used: • Market-orientated businesses (uses of market research
information to a business)
• Primary research and secondary research (benefits and limitations of each)
• Methods of primary research, e.g. postal questionnaire, online survey, interviews, focus groups
• The need for sampling
• Methods of secondary research, e.g. online, accessing government sources, paying for commercial market research
reports
• Factors influencing the accuracy of market research data
3.2.2 Presentation and use of market research results:
• Analyse market research data shown in the form of graphs, charts and diagrams; draw simple
conclusions from such data
3.3 Marketing mix
3.3.1 Product: • The limitations and benefits of developing new products
• Brand image; impact on sales and customer loyalty
• The role of packaging
• The product life cycle: main stages and extension strategies; draw and interpret a product life cycle diagram
• How stages of the product life cycle can influence marketing decisions, e.g. promotion and pricing decisions
3.3.2 Price: • Pricing methods (benefits and limitations of different methods), e.g. cost plus, competitive, penetration,
skimming, and promotional
• Recommend and justify an appropriate pricing method in given circumstances
• Understand the significance of price elasticity: difference between price elastic demand and price inelastic demand;
importance of the concept in pricing decisions (knowledge of the formula and calculations of PED will not be assessed)
3.3.3 Place – distribution channels: • Advantages and disadvantages of different channels, e.g. use of wholesalers,
retailers or direct to consumers
• Recommend and justify an appropriate distribution channel in given circumstances
3.3.4 Promotion: • The aims of promotion
• Different forms of promotion and how they influence sales, e.g. advertising, sales promotion
• The need for cost-effectiveness in spending the marketing budget on promotion
3.3.5 Technology and the marketing mix: • Define and explain the concept of e-commerce
• The opportunities and threats of e-commerce to business and consumers
• Use of the internet and social media networks for promotion
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3.4 Marketing strategy
3.4.1 Justify marketing strategies appropriate to a given situation:
• Importance of different elements of the marketing mix in influencing consumer decisions in given circumstances
• Recommend and justify an appropriate marketing strategy in given circumstances
3.4.2 The nature and impact of legal controls related to marketing:
• Impact of legal controls on marketing strategy, e.g. misleading promotion, faulty and dangerous
goods
3.4.3 The opportunities and problems of entering new foreign markets:
• Growth potential of new markets in other countries
• Problems of entering foreign markets, e.g. cultural differences and lack of knowledge
• Benefits and limitations of methods to overcome such problems, e.g. joint ventures, licensing

SECTION 3 MARKETING

UNIT-10
Market – is a place or process where by the consumers and suppliers trade
Marketing - is identifying the customer wants and satisfying them profitably.
Marketing department – includes the marketing director, people responsible for market research, promotion,
distribution , pricing and sales.
The objectives of marketing
• increase the sales revenue and profitability
• increase the market share
 • improve the image of the products
• increase sales by extension strategy
• maintain market share
• target a new market or Enter new markets
• develop & Launch new product
• Brand awareness
• Enhance customer relationships
• Profitability
• Customer needs
• Alignment with business goals
The Role of Marketing – Identify customer needs, satisfy customer needs, maintain customer loyalty, Anticipate
changes in customer needs.

Market share is the percentage of the total market sales and held by one brand or business

Market and product orientation

Market orientation is known as consumer orientation. Producing the product for a target market as per their
requirement. Market orientation is market led -find the customer needs and produce the goods they need
Advantages of market oriented
• Flexibility
• Less risk
• Niche market

Product oriented - First produce the product and then find market for the product as these products are commonly
used. In Product orientation -Make the product first and look for the customers. Product oriented products depend
on -Market ,market size, market growth market share, Organizational culture, Nature of barriers to entry
• market size, market growth market share
• nature of marketing
marketing is a management process so it requires people to take responsibility for decision making

The 3 functional areas

Operations management, Finance, Human resource management
UNIT 10
Segmentation (splitting the market population in to small groups and consumer profile
( characteristics of consumers and customers)
Segmentation by demographics- details of the population, age group, Gender etc
Segmentation by geographic factors- location
Segmentation by psychographic factors- consumer’s nature, values, desires, goals, interests, and lifestyle choices
Advantages and disadvantages of segmentation
Better understanding of consumers
Increase sales
Growth opportunities
Gives support to product differentiation

TARGETING
Niche marketing ---small market- for a specific group-batch production- Differentiated marketing- selective or
multi segment market
Undifferentiated marketing – mass marketing – commonly used product-large quantity- flow production. Similar
product
Distinguish between mass market and Niche market? 136
Identify and explain the potential benefits of segmentation to business?

UNIT11

Define and Explain the following

Role of market research
Sampling methods
Quota
Random
Primary and secondary research and its Advantages and disadvantages
Unit 12
4 P’s Marketing Mix-includes all the activities involved in marketing a product or service
The marketing mix comprises off the 4’p’s. These include:
• Product – what product to make ,Type-good or service itself
• Price – what should be the price for the product-the price at which the good is sold to the consumer9cover
the cost of raw materials and profit)
• Place – how to reach the product to the consumer- channel of distribution used to distribute the product
• Promotion – how to inform the consumer that we have a product what the consumer needs-How the product
is advertised and promoted.
Product -type of products
Consumer good or service-bought by consumers for their own use
Producer goods or service- Bought by other businesses to use to produce consumer goods or services.
Product should have the required quality, suitable design, meet consumer needs and wants, the right product
to be made at the right price and the right distribution channel to be used. The right promotional method to
be used to reach the targeted customer. The product to be made at the right time.( a product needed for a
festival should not be made six months before and kept)
What makes product successful.161.
Satisfies the existing needs and wants of consumers with appropriate Design, performance, and reliability. The
quality should be consistent with the products brand image
Capable of stimulating new wants from the consumer.
Reasonable price that should be charged
The first business to produce new product or new changes to the original product before its competitors.
Should have something distinctive that makes the product appear different
Process Product development includes
Generate idea, select best idea for research, decide on product based on the possibility of sales, develop prototype,
test the market, launch the product.
Costs and benefits of developing new product .page 162
USP-unique selling point-the special feature of the product that differentiate it from others.

Brand name-the unique name that distinguishes it from the others.

Brand loyalty- is when the consumers keep buying the same brand again and again.
Brand image-The identity given to a product which gives a personality of its own.
Importance of brand image to the business (Green Wood High)- page162
Why the brand name add value to the product.-page 163
The cost and benefit of developing a new product?162

The role of packaging

Packaging is the Physical container or wrapping for product.it should be suitable for the product.
Packing is to Protect the product , good appearance suitable for the purpose, Nature of the product, safety and the
original shape of the product is to be considered, Normally package should have the information of what is in the
pack. Suitable for transporting without damage, impressive package promotes the product. Value of the product is to
be considered while choosing package, packing should not be costlier than the product itself. Legal requirements to
be considered when packing is chosen.
Product life cycle
Describes the stages a product will pass through from its introduction to through growth, maturity and decline.
Product development includes -Idea -Develop- Introduce-sales possibility-prototype-test market-launch the
product
Product life cycle includes the following .
The sales over a period of time of a product go through the following stages in the market which includes
Development, Introduction, Growth, Maturity, Saturation, Decline
The life time(how long) a product stays in a stage depends on the type of the product, competition, and
market trend. How long the product existed in the market.

How the stages of product life cycle influence marketing decision.

-Pricing-branded products are likely to be sold at a higher price.
In the growth stage Prices are likely to be higher than the competitors as the product is still new in the
market.

sales

development-introduction-growth time
(Place your product in the life cycle)
How would you know where your product is in a product life cycle?
(What questions you need to ask about the product ….to get the answer-
are there many competitors,
is the demand still growing
is there a decline in the sales
Is it still with very few or too many competitors
Is the product very popular
Are you finding it difficult to sell the product
Is the product still in the market
Is it very popular
Price of the 4 P’s
Price is one of the 4P’s of marketing mix
To decide the price the business will have take various aspects in to consideration
Total amount spent to make the product
Type of product
The market
The consumers
The demand for the product
The price Elasticity of the product

Pricing strategies.
Businesses use different method of pricing or pricing strategies.

The business use new pricing strategies mainly to

• get in to a new market
• increase the market share
• increase the profit
• make sure the basic cost of making the product is covered and a profit is added.
Based on the business objective the pricing strategies may change.

Methods of pricing
Cost plus pricing-Cost of (cost of sales)manufacturing the product plus % of the cost added as profit.

Based on how many units will be produced

Total cost of making the product
Adding a percentage mark-up for profit
 Benefits – easy, different mark-up can be used for different markets, each product earn profit for business.
Limitations- If the selling price is very high the sales will be less and lose market. Total profit will be made only if
sufficient units are sold. No incentive to reduce the cost.

TC Rs 4000 for 2000 ice creams. Make profit 50 percent,

(Total cost / out put ) x % mark up = profit on each unit.

(Cost / no of units) + 50% is the selling price

50% of selling price – Rs 4000/2000 X 50/100

4000/2000 = 2
2X 50/100 = 1
Sales price = Rs 3
Profit on each unit is Rs 1

1. Cost plus pricing-Cost of sales(cost of variables) plus % added as profit

2. Competitive pricing- just below competitors’ price
3. Penetration price – price set lower than all competitors to enter a new market
4. Price skimming – entering in to the market with new product at high price
5. Promotional pricing – reduce the price (low)for a short term to increase short term sales.
6. Psychological pricing – set a price which looks attractive such as 99/
7. Differentiated pricing (Dynamic pricing) – same product sold at different price for different market or
segment.

Price elasticity of Demand

Demand and elasticity

1. By the diagram – shape of the curve and its slope
2. Total revenue method – out put x sales price = Revenue
When the price increased if the revenue increases it is of inelastic demand. Even a big Price change is not stretching
the demand too much. Consumers are NOT sensitive to the price change. Whatever is the price they will buy.
When the price reduced if the revenue increases it is of elastic demand .A small Price change can stretch the
demand—Elastic. Consumers are sensitive to the price change.

3. If the percentage change in price is less than the percentage change in the quantity demanded the product is elastic.
The consumer responds to those products price changes.
4. If the percentage change in Quantity is less than the percentage change in the Price demanded the product is
Inelastic. The consumers do not respond much to the changes in the price of those products.

Demand and elasticity

5. By the diagram – shape of the curve and its slope

6. Total revenue method – out put x sales price = Revenue

When the price increased if the revenue increases it is of inelastic demand. Even a big Price change is not stretching
the demand too much. Consumers are NOT sensitive to the price change. What ever is the price they will buy.

When the price reduced if the revenue increases it is of elastic demand .A small Price change can stretch the
demand—Elastic. Consumers are sensitive to the price change.

7. Calculation P ED = %change in qty Demanded if the value above 1

Marketing objectives in Business
• increase the sales revenue and profitability
• increase the market share
• improve the image of the products
• target a new market or Enter new markets
• develop & Launch new product
• Brand awareness
• Enhance customer relationships
• Profitability
• Customer needs
• Alignment with business goals
OBJECTIVE OF PROMOTION OF MARKETING
Introduce new products
Increase business
Stimulate demand
Assess the marketing and promotional situation
Branding
Build awareness
Increase purchases by existing customers
Brand awareness
Brand equity

Place of the 4 P’s

The place – channel of distribution.( what means is used to reach the goods to the consumer).(Means used to
reach the product from the place of production to the consumer)
Channels of distribution.
Channel. 1. Producer to -consumer – sell directly to consumer so it is cheaper. (online and direct)
Channel. 2. Producer to – retailer -consumer – the retailer sells to consumer on a small profit.
Channel. 3. Producer to – wholesaler- retailer -consumer. Wholesaler and retailer takes profit and sells.
Channel. 4. Producer to – Agent - wholesaler- retailer -consumer.
The agent takes the entire product and sells through the wholesaler to retailers, and they sell to consumers. Price is
much higher here as they all add profit. Agents are mostly for selling goods in other countries.
Methods of distribution.
Department stores-large stores in the centre of the town
Chain stores- two or more stores with same name and characteristics
Discount stores -retail store offering wide range of products at discounted price.
Super store -very large out of town stores
Supermarkets – retail grocery stores
Independent retailers – very small local shops provide personalised service.
Direct sales – factory outlets
Mail order – get info from catalogues and online order
Internet or e-commerce - from website or other apps get info and order using the same platform
WORK - To do
List out the Advantages and disadvantages of the 4 channels.
Factors affecting the distribution channel .
Technical product, Expensive product, purchased often, perishable, sold to producer or consumer , selling abroad,
location of consumers, where the competitors sell their products
Promotion of the 4P’s
The promotion decision in the marketing mix
Without promotion the customers will not know about the product .
Raise awareness of a business’s product and encourage consumers to purchase the products.
Aims of Promotion
1. Inform people about the product.
2. Introduce new product on to the market
3. Compete with competitors’ products
4. Create brand image
5. Increase sales
6. Improve company image
Promotion includes- advertisement, sales promotion (below the line)

• Above the line advertising – ATL is used when the focus is on mass media promotion to reach a large
audience. ATL includes media such as radio, TV, print media such as newspaper and magazines, and
billboards.
• Below the line advertising – BTL, below the line advertising is directed to reach a small, targeted
audience. BTL includes marketing activities such as brochures, direct mail, flyers, sponsorships and email
campaigns.

Advertising. – communicates to potential customers to encourage them to buy a product. This is known as above
the line promotion.
Define advertising – paid for communication with potential customers about a product to encourage them to buy it.
Different types of advertising.
Informative- full information about the product is given to the potential customers.
Persuasive – try to persuade (influence) the consumer that they should really buy the product.
Advertising process- set objectives – decide advertising budget – create an advertising campaign – select the media
to use – evaluate the effectiveness of the campaign.
Target audience—the potential buyers of the product.
Identify Different advertising media the business can use- write their advantages and disadvantages. (page
187-189)
Television, You tube, Radio, newspapers, business groups, other chat groups, magazines, posters and billboards,
other TV shows, leaflets or brochures, website, ads on motor vehicles and other display platforms.
Sales Promotion - are incentives such as special offers or special deals aimed at consumers to achieve short
term increase in sales.
Different sales promotions- after sales services- gifts- BOGOF (buy one get one free)-Price reduction,
Competitions with prices, point of sale displays and demonstrations – Free samples- product placements
(when branded goods or services are featured in television programmes, movies, or music videos. Products are
associated with the image in the program.
Advantages of sales promotion
Promote sales, encourage new customers to try existing product, encourage customers to try new product, encourage
existing customers to try a new product (customer loyalty). – encourage customers to buy your product instead of
the competitors product.
Marketing budget is the financial plan for marketing of a product for a specific period of time.
Importance of marketing budget in business.
 • Marketing budget specifies how much money is available or allocated for the promotion of the product.
• Money spent should not be more than the profit they business is able to make unless if there is a specific
objective for the business. (to compete at any cost to remove competitor from the market)
• If the business budget allocation for the product is less, then the place where they advertise, no of times and
the mode of promotion is to be considered where it is affordable.
How to decide which promotional method to use based on various factors.
• The stage of the product in the product life cycle.
• The nature of the product itself.
• The cultural issues involved in international marketing
• The nature of the target market

Public relations/ sponsorship.

 Sponsor different events or sports and charity work to make the product and the brand popular and public
awareness about the product and brand
Sponsor the events or food supply for orphanages, do charity work or service for other organizations.

16. Technology and marketing mix.

Social media marketing – is a form of internet marketing. Develop attractive posts and videos and put it up in
the social media or other search engines. This reaches a wider range of potential consumers.
Viral marketing – Encourage consumers to share information online by giving points or other benefits.
The internet allows the data collection of consumers purchase habits and this gives room for the dynamic
pricing. (Dynamic pricing sell same product at different times to same or different consumers at different
prices)
E- COMMERCE
E- commerce with online purchase & sales and Globalization has opened the market wider for the consumers
and producers.
E- commerce is the online buying and selling directly or using different platforms or apps.
E- Commerce opportunities and threats to business
Opportunities- low-cost promotion, global coverage, access more customers, no shop required, B2B easier.
Threats – setting up and updating website costs, no direct customer contact, competition from other websites,
Transport cost to deliver products.
E- Commerce opportunities and threats to consumers
Opportunities
The comes to the consumer, no need to go out and buy, Time and money saved for travel.
Easy to compare prices online using price comparison websites or apps.
Easy payment online.
Most of the products can be returned if it is not suitable.
Makes market and products wider for consumers as products can be ordered from anywhere. Global market.
Most of the time products are cheaper as the online stores sell at cheaper rate as they have no show room
expenses.
Some foreign goods and services became cheaper due to competition on the internet and the comparatively
reduced cost for packing & transport.
Threat
To order online products internet is required.
The products may not be as good as what we see online.
Technical problems
No personal contacts
It takes time to get the replacement or refund if the product is incorrect.

17. MARKETING STRATEGY

The plan to combine the right combination of the four elements of marketing mix for a product or service to achieve
a particular marketing objectives.
The objectives of marketing
• increase the sales revenue and profitability
• increase the market share
• improve the image of the products
• increase sales by extension strategy
• maintain market share
• target a new market or enter new markets
• develop & Launch new product
• Brand awareness
• Enhance customer relationships
• Profitability
• Customer needs
• Alignment with business goals
Marketing strategy for a product is to combine all the 4 Ps linked together in such a way that it would attract the
targeted market to buy the product or service throughout the product life cycle (Stages a product will go through in
its sales over a period of time) to ensure the consumer decisions are being influenced positively.

• Marketing strategy should meet the requirements of the target market.

• Product based on customer needs.
• The price the consumers are willing and able to pay (feel the worth)
• The best method to reach maximum targeted customers
• The right method of promotion within the budget to attract the targeted market.
For Recommending and justifying the marketing strategy in a given circumstances following points to consider.

• Marketing objective- increase sales or to launch

• Marketing budget-how much fund available.
• Target market- who are in the target market- income, culture, demographics etc.
• Balanced marketing mix- decide the product, price, place and promotion, considering the above factors fit
together and make it available to the targeted market.
Legal controls-
Weight and measures -correct wight and measure to be used,
Trade description -correct information about the product and no misleading information to be given
Sales of goods (product)- products with serious flaws should not be sold.
Supply of good or service Act- service must be provided with skill and care.
Pricing claim- Illegal to make misleading pricing claims such as 50% off for today, for any damaged or expired
product.
The customer contract regulations – allow the customer to return the product after online purchase within 14 days.
Growth potential of new markets.
Opportunities- High growth potential in other countries markets then the local market.as the local markets could be
saturated. Globalisation and the advancement of technology created a situation for countries in the world to trade
between by many countries relaxing the trade barriers. This helps the overseas trade easier for businesses.
Problems of entering foreign market. Lack of knowledge about the competition and nature of the market in the other
country
Cultural differences- may not be aware of the culture of the other country. Certain products and services are not
allowed in many countries. (though it is available in the internet sources)
Exchange rates- fluctuation in the exchange rates may affect the trade.
Import restriction to support local production by the other countries may have tariffs, which increases the cost of the
product.