Marketing Notes Westlake form 3 2025

MARKETING
Marketing is identifying customer wants and satisfying them profitably.
• There are many departments within the Marketing sector of a business. For example
• The role of the marketing is to:
Identify customer needs – finding out what kind of products or services customers want, the
prices they are willing to pay, where and how they want to buy these goods or services, and what
after-sales services they might want.
 » Satisfy customer needs – so that goods and services can be sold profitably. Customers
want the right product, in the right place and at the right price. Failure to meet these
needs, or doing it less well than competitors, will lead to the business facing the risk of
closure.
 » Maintain customer loyalty – by building customer relationships. Keeping close links
with customers and finding out if products or services are continuing to meet their needs
will help to ensure the success of the business. If customers change their expectations of
what they want from a good or service then the business should respond to meet these
new needs. This will be identified by maintaining close customer relationships. It is
very important to keep existing customers (customer loyalty) and not just concentrate on
attracting new ones. It is much cheaper for a business to try to keep existing customers
(for example, with loyalty cards) than trying to gain new customers.
 » Build customer relationships to gain information about customers – by building a
long-term relationship with them so that their changing needs can be understood. This is
one of the most important roles of the Marketing department in today’s globally
competitive world. Building a relationship with customers means that market research
information can be used to understand why customers buy products and how they use
them. This makes for more effective marketing.
 » Anticipate changes in customer needs – by identifying new trends in customer
demand or gaps in the market so that businesses can produce goods or services which are
not currently available.

Why customer/consumer spending patterns change

• Markets don’t stay the same forever, businesses need to adapt to market changes in order to
stay competitive
• Some markets change very often (i.e. phones) while some don’t change quickly (i.e. jewelry
or cereals)
• Markets change because consumer spending patterns change, this might be due to:
 Trends and fashions change – for a period of time it might be fashionable to have a
specific product (i.e. Fidget Spinner) but a month later no one buys them
 Advancement in technology – new products provide the latest technology so older
versions (i.e. iPads or computers) don’t have high sales.
 Unemployment/Wages – Economies with high unemployment rates/low wages will not
have high sales of expensive products
 Ageing population – different ages are interested in different products (i.e. anti-ageing
creams)

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 Marketing Notes Westlake form 3 2025

• Changing customer needs are important to businesses. They must identify these changes and
respond in order to stay successful.

• Market Share – the percentage of the total sales of a market held by a single business (i.e. if
50
Company A has $50 Million in sales out of a $200 Million market, then Company A has 200 =
25% market share
• Some markets have become more competitive because:
 Globalization – products are sold all over the world
 Transportation – it is cheaper, quicker and easier to send products around the world
now
 Internet – customers can now search for products or services and buy from somewhere
else around world
• For a business to stay competitive, it must:
 Maintain good customer relationships
 Keep improving its existing products
 Bring out new products to keep customer’s interest
 Keep costs low

Market
• Market – the total number of customers, potential customers and other sellers of a
product/service
• There are two types of market:

1. Mass market- is where there is a very large number of sales of a product.

The advantages of selling to a mass market are:

» total sales in these markets are very high
» the business can benefit from economies of scale (benefits operating on a large scale).
» risks can be spread, as often the business will sell several different variations of products to the
mass market, and if one variety of the product fails then the other products may still sell well
» opportunities for growth of the business due to large potential sales.
However, there are disadvantages, which include:
» high levels of competition between businesses selling similar products » high costs of
advertising and promotion
» standardised products or services are produced and so may not meet the specific needs of all
custoers or potential customers, therefore leading to lost sales.

2. Niche market-is a small, usually specialised, segment of a much larger market For
example, the tie industry is a mass market, but a business that makes ties out of crocodile
skin is a niche market.
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Being able to identify and supply a niche market has advantages:

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 Marketing Notes Westlake form 3 2025

» Small businesses may be able to sell successfully in niche markets as larger businesses may
not have identified them but concentrated on the mass markets instead. This will reduce
competition from the larger businesses in niche markets.
» The needs of consumers can be more closely focused on, and therefore targeted, by
businesses in a niche market. This may lead to high levels of consumer loyalty and good
customer relations.
However, there are disadvantages to operating in a niche market:
» Niche markets are usually relatively small and therefore have limited sales potential. This
means it is likely that only small businesses can operate profitably in these markets. If the
business wants to grow it will need to look outside the niche market to develop products for
mass markets.
» Often businesses in a niche market will specialise in just one product. This means that if the
product is no longer in demand the business will fail as the business has not spread its risks.
Producing several products rather than just one product means that if one fails there are other
products which are still in demand and the business carries on trading.

1.4 Market Segmentation

Market segment is an identifiable sub-group of a whole market in which consumers have
similar characteristics or preferences.
 A market can be segmented by:
• According to age
• SOCIO-ECONOMIC group – grouping people according to how much they are
paid
• Location – where people live (people that live in wet areas will buy more
waterproof clothing than those who live in dry areas)
• Gender – men and women products differ
• Lifestyle – how many children a person has, religion, habits, etc.

Benefits of market segmentation:

• Business aims all of its marketing efforts to the specific segment, making marketing
costs efficient
• Since less money is spent on marketing, more profit
• Identify a market segment whose needs are not being fully met and fill the gap (first
in market).

There are 2 types of businesses:

 Product-oriented business – a business that focuses mainly on the product itself
 Market-oriented business – a business that focuses on market research and find out what
the customer wants before a product is developed. Market research is important because
a business needs to know how many people would be willing to buy the product, this is to
see how profitable it would be

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 Marketing Notes Westlake form 3 2025

Market Research
Market research is the process of gathering, analysing and interpreting information about a
market

There are 2 main types of market research:

PRIMARY RESEARCH (field research)

• Primary Research - Gathering of ORIGINAL data by talking directly with customers/potential

customers

• Primary research includes:

1. Questionnaires/surveys
Advantages of questionnaires
» Detailed qualitative information can be gathered about the product or service. » Customers’
opinions about the product or service can be obtained.
» They can be carried out online – see section below.
» To encourage people to fill in the questionnaire, vouchers can be offered or participants
entered into a ‘prize draw’.
Disadvantages of questionnaires
» If questions are not well thought out, the answers to them will not be very accurate. It may
be very misleading for the business if it is thought that a product is liked by consumers, when
in fact the respondents were only saying they thought the product was quite attractive but
they would not actually buy it.
» Carrying out questionnaires can take a lot of time and money. » Collating and analysing the
results is also time-consuming.

2. Samples – A group of people who are selected(randomly) to answer (i.e. questionnaire)

3. Quota Sample – when people are selected based on certain characteristics (age, income)
4. Observations – many methods, i.e. Seeing which television channels are being watched or
watching people and their habits or seeing which products have sold well in a store

Focus Groups – a group of people who represent the target market. They test out
product/service and explain what they like or don’t like about it

Advantages of focus groups

» They provide detailed information about consumers’ tastes and preferences.
» Interaction between members of the group can help the business understand the reasons for
people’s opinions.
» Quicker and cheaper than individual interviews.
Disadvantages of focus groups
» They can be time-consuming and expensive if conducted by a specialist market research
agency.

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» Discussion could be biased if some people on the panel are influenced by the opinions of
others.
» Can be dominated by just a few people so the researcher will need to be experienced to deal
with this
Online surveys
These can be carried out on specialised websites using any internet-connected device,
including mobile phones. Researchers can design their own survey and post this on their
website. The researcher will then email people to ask them to go to the website and complete
the questionnaire.
Advantages of online surveys
» Fast, with quicker response times than other forms of survey. » Cheaper than interviews or
postal questionnaires.
» Easy to complete for the participant.
» Data collected can be quickly presented and analysed using IT tools.
Disadvantages of online surveys
» Absence of interviewer to explain open-ended questions or to ask follow-up question to gain
more detailed information.
» Cannot reach potential respondents who do not have access to the internet.
» Scope for fraud – some people will just answer an online survey to gain any incentives being
offered and not give honest answers, or they complete the survey carelessly.

Interviews – person will interview other person and ask questions

When interviews are used, the interviewer (the person asking the questions) will have ready-
prepared questions for the interviewee (the person answering the questions).
Advantages of interviews
» The interviewer is able to explain any questions that the interviewee does not understand.
» Detailed information can be gathered about what the interviewees like and dislike about the
product.
Disadvantages of interviews
» Whether consciously or unconsciously, the interviewer could lead the interviewee into
answering in a certain way, resulting in inaccurate results due to interviewer bias.
» Interviews are very time-consuming to carry out and, therefore, they are often an expensive
way of gathering information.

Advantages of primary research

» It is up to date and relevant to the business undertaking it.
» It is usually planned and carried out by the people who want to use the data; it is first-hand.145
» It is most effective when it is used to gather information which will help the business with a
specific problem, for example, to test the market to see if a new product would be likely to
succeed.
» It is not available to other businesses (unless they undertake their own research).
Possible limitations
» It can be expensive, for example, individually interviewing many people. » It is not available
immediately – it takes time to collect.
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 Marketing Notes Westlake form 3 2025

SECONDARY RESEARCH (desk research)

• Secondary Research – information that has already been collected and is available for others
• This information can be obtained either from INTERNAL SOURCES or EXTERNAL
SOURCES.
• Internal Sources – within the firm’s own records: sales departments, customer records, finance
department and CUSTOMER SERVICE department
External Sources – outside the business: government statistics (i.e. population, ages),
Newspapers, Market research agencies, INTERNET
Advantages of secondary research
» Often a much cheaper way of gathering information than primary research, as the data
collection has already been done by others.
» It can be used to help assess the total size of a market by finding out the size of the population
and its age structure. This type of information could not be obtained by primary research.
» Newspapers may carry vital economic forecasts if you are trying to assess when a recession is
coming to an end and your sales are likely to increase again.
» It is usually quicker to obtain secondary data than to undertake primary research.
Disadvantages of secondary research
» Data may have been collected several years ago and be out of date.
» Data is available to all businesses – not just collected for the sole use of one business.
» Data may not be completely relevant as it was not collected with the needs of one business in
mind.

• Regardless on which type of research a business chooses to use, the accuracy of the research
data depends on:
 How carefully the sample was drawn up
 How the questions in questionnaires/interviews were written to make sure honest answers
were
 given.
 The sample itself and its size. By using quota sampling you might get more reliable
results
 The bias – some secondary research will be biased (i.e. articles on newspapers) which
means the
 information might be unreliable
 Age of the data – older data might be inaccurate
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Marketing Mix
The marketing mix is a term which is used to describe all the activities which go into marketing
a product or service. These activities are often summarised as the four Ps – product, price, place
and promotion:
 Product
 Price
 Place
 Promotion
Product

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• The product itself is part of the marketing mix, it has to

ensure it is the right product for the market.
• This includes the quality and the design of the product (including its packaging)
• Marketers must ask themselves “what can I do to make this product better than my
competitors’ products”
• Unique Selling Point (USP) – the special feature of a product that makes it different from
other products
• When businesses are developing new products there are several benefits, but also many
costs/implications:
• Since the product has its USP, the business will be the first into the market with the new
product
• Diversification for the business – more range of products to sell, more customers
• Allows business to expand into new (or existing) markets
• Now-a-days products are sent straight to a retail store.

Costs
• Carrying out new market research & analysis is expensive
• Producing prototypes &cost of wasted materials
• Lack of sales if the target market is wrong
• Deterioration of brand image if the new product fails to meet consumer needs.

There is no seller to persuade the potential customer to buy the brand’s product over competitors
• This has to be done through brand image of the product
• Brand image – the identity of a product which separates it from competitor products
• The product brand is advertised to inform all the qualities about the product and encourage
consumers
• Businesses want to encourage existing and new/potential customers to buy from them and
create
Brand Loyalty
• If a business has a bad brand image due to poor quality or bad service, then consumers will not
buy from them and there won’t be brand loyalty.
• The other very important aspect of the product is the packaging. It has 2 functions:
 To be easy to put the product in, protect it, allow it to be used easily, and to be easily
transported from factory
 To promote the product: it must appeal to the customer (colour & shape) and must
emphasize the brand image (i.e. a luxury product’s packaging might be gold colour)
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Product Life-Cycle
product life cycle describes the stages a product will pass through from its introduction, through
its growth until it is mature, and then finally its decline and it can be shown as below.

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1. Development of product – market research carried out and product is tested, before launching
(no sales)
2. Product introduced to market – Sales growing slowly because customers don’t know it exists
yet (no profit)
3. Growth - Sales grow quickly – advertising is changed to encourage customer loyalty
4. Maturity - Sales still increase, but slowly, competition is high so prices are changed (profits
are at highest)
5. Saturation – competition is very high, profits startto fall as sales reached maximum point.
Price reduced
6. Sales decline – new products are made or trend is gone. Prices are so low it is unprofitable to
make it.
How stages of the product life cycle influence marketing decisions
Knowing the stage of the life cycle that a product is in can help a business with pricing and
promotion decisions.
Pricing
» A branded product is likely to be sold at a high price when it is first introduced to the market –
as a low price could give the wrong message about quality.
» Prices are likely to be relatively higher than those of competitors in the growth stage as the
product may still be ‘newer’ than those of rivals.
» In the saturation or maturity stage, when the business will want to try to stop sales declining,
the price is likely to be reduced as competitors may have launched newer versions of their own
products.
» Some substantial price discounts might be offered during the decline stage – especially if the
business does not plan to ‘extend its life’.

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Promotion
» Spending on promotion will be higher at the introduction stage than in other stages as the
business has to inform consumers of the product. Also, if it is a completely new brand, a clear
identity will need to be established for it.
» Advertising would probably be reduced in later stages, either because the product is already
well known or because the business wants to use its marketing budget on other, newer, products.
» Promotion spending might be increased again if the business decides to adopt an extension
strategy – customers will need to be informed about this and ‘convinced’ that the product is
worth buying once more.
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Pricing(price)
• There are 5 main types of pricing methods:
1. Cost Plus – the cost of manufacturing plus a profit.
Benefits
» The method is easy to apply.
» Different profit mark-ups could be used in different markets. » Each product earns a
profit for the business.
Limitations
» Businesses could lose sales if the selling price is higher than competitors’ prices. » A
total profit will only be made if sufficient units of the product are sold.
» There is no incentive to reduce costs – any increase in costs is just passed on to the
customer as a higher price. It will cover costs and make sure profit will be made

2. Competitive – priced just below the competitors’

Competitive pricing is when the product is priced in line with or just below competitors’
prices to try to capture more of the market.
Benefits
» Sales are likely to be high as the price is at a realistic level and the product is not under- or
over-priced.
» Avoids price competition, which can reduce profits for all businesses in the industry.
» Often used when it is difficult for consumers to tell the difference between the products of
different businesses.
Limitations
» If the costs of production for a business are higher than those of competitors perhaps because
the product is of a higher quality – then a competitive price could lead to losses being made.
» A higher quality product might need to be sold at a price above competitors’ prices to give it a
higher quality image.
» In order to decide what this price should be, detailed research would be needed into what prices
competitors are charging, and this research costs time and money

3. prices to get more market share and increase sales

Penetration – priced lower than competitors’ prices toenter new market (consumers will try
out cheaper product and see if they like it)

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Penetration pricing is when the price is set lower than the competitors’ prices in order to be
able to enter a new market
Benefits
» Often used for newly launched products to create an impact with customers.
» It should ensure that sales are made and the new product enters the market successfully.
» Market share should build up quickly.
.
Limitations
» The product is sold at a low price and therefore the profit per unit may be low.
» Customers might ‘get used’ to low prices and reject the product if the business starts to raise
the price after the product’s early success.
» Might not be appropriate for a branded product with a reputation for quality.

Price Skimming – a high price is set for a new product on the market. (used for new inventions
or development of an old product) high profits to cover the research.
Benefits
» Skimming can help to establish the product as being of good quality.
» High research and development costs can be rapidly recouped from the profit made on the
product at the high price.
» If the product is unique, a high price will lead to profits being made before competitors launch
similar products – then the price will have to be reduced.
Limitations
» The high price may discourage some potential customers from buying it.
» The high price and high profitability may encourage more competitors to enter the market.

Promotional – priced very low for a short period of time to increase sales. When there is lots of
stock but no one is buying don’t make much (if any) profit
Benefits
» It is useful for getting rid of unwanted inventory that will not sell.
» It can help to renew interest in a product if sales are falling, for example during an economic
recession.
Limitations
» The revenue will be lower because the price of each item will be reduced.
» It might lead to a price competition with competitors – so the business might have to reduce
prices again.

Price Elasticity – a measurement of how responsive the market is when there is a change in
price of a product
• In other words, how much you can increase the price before sales fall enough that you make
less money
• A product either has price-elastic demand or price inelastic demand.
• Price-Elastic Demand is when the % of the loss in demand is GREATER than the % of the
increase in price
• i.e prices increase by 5% but then sales decrease by 10%. Therefore, there is falling revenue for
the business

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• Price-Inelastic Demand is when the % of the loss in demand is LESS than the % of the
change in price
• This means you can increase the price of the product a lot without the demand changing (i.e. oil
& petrol because people have to buy it)
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Place – Distribution Channels

A distribution channel is the means by which a product is passed from the place of production
to the customer
• Where a product is sold will affect how well it will sell
There are 4 main distribution channels:
1. Manufacturer sells products directly to consumer (i.e. car components to car factory)
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Advantages
» This distribution channel is very simple. It involves manufacturers selling their products
directly to the consumer.
» It is suitable for products, such as certain types of food products, which are sometimes sold
straight from the farm.
» There is a lower price if sold direct to customers – cuts out wholesaler/retailer. » Products can
be sold by mail order catalogue or via the internet.
Disadvantages
» This is usually impractical for most products because the consumers probably do not live near
to the factory and could not go there to buy the products.
» This method may not be suitable for products which cannot easily be sent by post.
» It can be very expensive to send products by post or courier and therefore it may not be cost
effective

2. Distribution channel 2-Using a retailer as the only intermediary

Advantages
» Producer sells large quantities to retailers.

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» Reduced distribution costs compared to selling directly to consumers (distribution channel 1).

Disadvantages
» No direct contact with customers.
» The price is often higher than ‘direct selling’ as the retailer has to cover its costs and make a
profit.

4. Distribution channel 3-

Advantages
» Wholesaler saves storage space for small retailer and reduces storage costs.
» Small retailers can purchase fresh products in small quantities from wholesaler because they
have a relatively short ‘shelf life’ before they deteriorate.180
» Wholesaler may give credit to retail customers so they can take the goods straightaway and pay
at a later date.
» Wholesaler may deliver to the small retailer thus saving on transport costs.
» Wholesaler can give advice to small retailers about what is selling well. They can also advise
the manufacturer what is selling well.
Disadvantages
» May be more expensive for the small shop to buy from a wholesaler than if it bought straight
from the manufacturer.
» Wholesaler may not have the full range of products to sell.
» Takes longer for fresh produce to reach the shops, so may not be as good quality.
» Wholesaler may be a long way from the small shops.
» The consumer price is often higher than ‘direct selling’ as both the wholesaler and retailer have
to cover costs and make a profit

5. Distribution channel 4-

Advantages
» Manufacturer may not know the best way to sell the product in other markets.
» Agents will be aware of local conditions and will be in the best position to select the most
effective places in which to sell.
Disadvantage
» The producer has less control over the way the product is sold to customers.

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Promotion
Promotion is where marketing activities aim to raise customer awareness of a product or brand,
generating sales and helping to create brand loyalty.
• Promotion – publicizing a product or brand to increase customer awareness or increase sales
• The aims of promotion include:
 To create a brand image for a product
 To introduce a new product into a market
 To increase competition in a market
 To improve the company’s image
 To increase the sales of a product
• There are many types of promotion methods a business may choose to use.
• There are 2 types of advertisements:
 Informative Advertisement – where the promotion of a product focuses on giving
information about a product (i.e. the benefits of the product)
 Persuasive Advertisement – where the promotion of a product focuses on persuading
the consumer that they really need the product and they should buy it
• A business must also choose the most suitable advertising media to use to promote a
product/brand
• Advertising media include:
 Television – suitable for products sold to most people (food, cars, household products). it
is very expensive but millions of people will see it
 Radio – cheaper than TV but there’s no visual message
 Newspapers – suitable for local products. Cheap to advertise and can be select to target
specific group

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 Magazines – niche/specialist products can be promoted in specific magazines (bike

magazines,
 technology)
 Billboards – suitable for mass products/local events. Reasonably cheap and are seen by
many people. But many people miss it. And no detailed info can be put.
 Internet (social media) – suitable for products people already know (clothes, books,
electronics). Quite cheap and through algorithms, websites can direct ads to a target
audience, and orders can be made online. However, there is lots of competition (i.e. top
on google)
• Another way a business can promote a product/brand is through sales promotion.
Sales Promotions – when incentives (i.e. special offers/sales) are used to increase sales (short
term)
• The main sales production methods include:
 Sales (price reductions)
 Gifts (i.e. little toys in cereals)
 “Buy one get one free”
 Competitions (I.e. raffles, a chance to win something)
 Free samples

• When a marketing department of a business is deciding which type of promotion it should use,
it must take into account the marketing budget – the financial plan for marketing product/brand
for a period of time i.e. if the budget is small, a business cannot afford to advertise on television.
It must plan out perfectly in order to have cost effectiveness, while reaching target audience.
This is where small business struggle compared to big businesses, because their budget is so
much smaller.

3.3.5 Technology & Marketing Mix

• Now-a-days most things are sold on the internet, when you buy or sell goods/services on the
internet it is called E-Commerce
• Not every product/service is suitable for e-commerce, products that are handmade (i.e. suits) or
businesses that like a personal approach with customers

• The opportunities and threats of e-commerce to a BUSINESS include:

Opportunities Threats
• Low-cost promotion: websites are • Competition is very high because
cheap to run and can promote competitors also have websites to
worldwide sell• Website design must be easy to
• Everything can be automated (orders use and attractive, this costs money•
are received and sent to warehouse to Transport costs per product sold are
dispatch) higher than sending all to retailer• No
• Businesses can buy from other direct contact with customers – less
businesses(materials/supplies) feedback

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• Opportunities & threats of e-commerce to consumers:

Opportunities Threats
• Need access to internet(poorer
• Don’t need to leave house to buy countries don’t have good access to
products, shipped straight home web)
• Easy to compare different prices • slow servers or websites or computer
from different stores and buy cheapest failures can frustrate customers
• Payment is very easy through • products cannot be
credit/debit card seen/touched/tried on(i.e. shoes) and
• Can view and buy products from returning products is inconvenient
abroad, would be impossible without • Some people are worried about
• Competition of ecommerce makes identity theft or credit card fraud by
prices much cheaper for consumers entering their details on to a website

Marketing Strategy
• Marketing Strategy is the plan of action to promote and sell a product or service
• This includes combining the 4 elements of the marketing mix (Product, Place, Price,
Promotion) to achieve a marketing objective, which could include:
 Increasing the sales:
 Of existing products (i.e. by selling in new market)
 Of a new product
 Increase market share/maintain market share.

• The different elements of the marketing mix are very important to influence customer
decisions.
• For example: A product is made, priced reasonably, and meets the consumer needs, but there is
no promotional element. No one will buy it because people don’t know about its existence
• Or if a product is made that doesn’t meet consumer needs, so it won’t sell regardless of the
price set
• It is crucial to have all elements working together in order to influence consumer decisions
(buying the product)
Legal Controls in Marketing
• There are many laws in different countries to protect consumers from businesses taking
advantage of their lack of knowledge or lack product information
• These legal controls include (in the U.K.):
 Businesses are not allowed to sell products that weigh less than they should, or if weighing
equipment is inaccurate
 ‘Trade Descriptions’ - Businesses are not allowed to give consumers misleading
information on purpose (i.e. saying that a shirt is made out of silk when it is made out
of cotton)
 ‘Sale of Goods’ - Businesses are not allowed to sell products that have less-than-
satisfactory quality – that don’t fit for the purpose intended (i.e. waterproof shoes that
aren’t waterproof)
 A service must be provided with at-least satisfactory skill and care

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 Businesses cannot have misleading pricing claims (i.e. 50% off today, when yesterday it
was the same price)
 A business is responsible for any damage/harm that a faulty (or dangerous) product
might do to a consumer
 Customers have 7 days in which they can change their minds about purchasing a good
or service. This applies to any transaction made over distance (i.e. online)
Entering New Markets Abroad
• The globalization of businesses has been increasing over the years, there are opportunities &
problems to this:
Opportunities Problems
• Growth potential in other countries:
countries are developing and • Lack of knowledge of competitors
population incomes are increasing or consumer a bits
• Markets in original country might be • Cultural differences: for example,
saturated (sales are low) alcohol won’t sell well in middle east
• Can produce products in abroad and • Exchange rates: in some countries
learn about its market to increase sales their currency isn’t stable so price of
• Trade barriers are lowered in most importing goods increase
countries so it is cheaper to enter • Transport costs are more expensive
markets

• However, there are many methods to reduce and overcome the problems of entering a new
market:

Problem Method to overcome

Joint-Ventures: by working together/merging with local
Lack of
businesses in the same market, a business will gain a lot
knowledge (&
of important knowledge about the culture & market
Cultural
Franchising: letting people from the market abroad
Differences)
which have local knowledge to choose location of shop
Licensing: the business gives permission for a local
Transport costs
business to sell goods under its name, so they do not
are expensive
have to physically import all the products
Localizing Existing Brands: where a business still has
Cultural
the same brand image but adapts it to the market it is in
Differences
(i.e. McDonalds cooking vegetarian meals in India)

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 Marketing Notes Westlake form 3 2025

Do not copy the question

Sample questions
Mr Patel owns and runs a small private li111ited cornpany called Patel Enterprises Ltd which
Inanufactures sportswear. The n1ain products are polp shirts, shorts and skirts for younger
children who play tennis. The products all have the san1e brand l1an1e,'Tennis Tiger'. These are
high quality clothes which are sold for a high price. The retail outlets which sell these products
are specialist sportswear shops, but Patel Enterprises Ltd also sells its products on the internet.
The range was launched two years ago and growth in sales has been rapid. However, over the
last six n10nths sales have continued to increase, but the increase has been slower than in the
previous two years.
a) Why does Patel Enterprises Ltd brand its products? [6 marks]
1-2 marks for displaying a knowledge of branding; 1-2 marks for applying this to the context of
Patel Enterprises Ltd; 1-2 marks for explaining the advantage of branding.
A business brands its products to create a unique identity so that customers will be able to
recognise it and buy the products again. 'Tennis Tiger' is the brand name for Patel Enterprises
Ltd products. Customers will recognise the brand name and know that these products will be of
good quality and it will 111akethen1 n10re likely to keep buying the products. Also, if there is a
brand logo on the garments then customers will want to buy n1atching polo shirts and shorts and
so the business will increase its sales. This is a good answer with more discussion than
necessary to gain full marks. Knowledge if branding is clearly given along with a good
application to this case. More than one advantage of branding is also.
b) What brand image would you suggest for 'Tennis Tiger'?
Explain your answer. [4 marks]
c) What stage of the product life cycle do you think 'Tennis
1 mark for identifying that it has reached the maturity stage of the life cycle; up to 2 marks for
justifying why this is the case. It has reached the maturity stage because sales are still increasing
at a rapid rate.
d) The increase in the sales of 'Tennis Tiger' products has slowed in the last six months. What do
you think the Company should do if sales do not increase any Ignore? Explain your answer.

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