Contents
* Action plan p 3
* A definition of marketing p 4 - 5
* Questionnaire p 6
* Why did I use a questionnaire p 7
* My competitors p 8
* Questionnaire results p 9 - 10
* Main ways of promotion p 11
* Marketing plan p 12
Action plan
Number
Task
Done
Investigate the process you would go through before opening your shop:
* What information you would need to find out, and how would you set about collecting it. (ACTION PLAN)
2
* Having gathered this information and analysed what it means, might you alter your original ideas for the business? (ACTION PLAN)
3
* Presuming you went ahead with the shop, how would you attract your customers? How could you advertise and promote your business? (ACTION PLAN)
4
Write a brief definition of marketing.
5
Write what sources you get the definition from.
6
Draft a suitable questionnaire, which will give you your target market and products/ services they require, and send them out.
7
Explain why you produced a questionnaire, and state why you hope to gain from it.
8
Discuss the various other methods of market research you could have used.
9
Visit a shop or shops similar to the type you have chosen to open, answer the following:
* The name of the shop, its type, and its aims.
* Its location and how important you consider this to be with regard to shops success.
* The range of goods/services it offers.
* Are there any ways in which its target market would effect the shops location, and the range of goods/services it sells?
* State what effects the opening of your shop might have on the community and existing businesses.
0
Take your completed questionnaires and:
* Review your market research - what information does the questionnaire data provide?
* Discuss how your results will help you make decisions with regard to your business location, target market, pricing etc.
* Discuss the effectiveness of this kind of survey, as you carried out, as it might be done in reality by a small business.
* Discuss the main ways in which any business can promote and advertise its products/services and how legal constraints can affect how it does this.
* Where possible get the costs for the promotion. This may affect your eventual choices of methods.
* Give your conclusions and final decisions on the promotional and advertising methods you have decided upon.
A Definition of marketing
What is a market?
A market is when a buyer and seller come together so that an exchange of goods or services can take place.
Before a business decides to launch a new product, many decisions have to be made. Let's consider a situation like this. Joe works for a camera company, she has to make the decision whether she should manufacture the newest range of cameras with a fashionable colour at present, or should it vary with the seasons? Would optional extras, such as a carry case, help to increase sales?
Branding and packaging
Another important feature of a product is its name. The camera company could be named after the products that it sells but this could be rather dull, however it is not abnormal for products to be named after the owner of the company, such as Powerpods after Mike Powerpod the Company's owner.
Packaging is also an important feature. Should the camera be packaged in a cheap but colourful box? Or sold in a plastic blister pack to increase its shelf life. Should it be sold unwrapped, ready to be put in a briefcase or handbag? Or should it be sold in a hard carry case, which would demonstrate that it is a substantial camera? However it is packaged, it is essential that it appears/appeals to the chosen market segment. For example some products are sold in elaborate boxes and packaging which gives the potential customer immediate confidence in its quality ...
This is a preview of the whole essay
Packaging is also an important feature. Should the camera be packaged in a cheap but colourful box? Or sold in a plastic blister pack to increase its shelf life. Should it be sold unwrapped, ready to be put in a briefcase or handbag? Or should it be sold in a hard carry case, which would demonstrate that it is a substantial camera? However it is packaged, it is essential that it appears/appeals to the chosen market segment. For example some products are sold in elaborate boxes and packaging which gives the potential customer immediate confidence in its quality which may not always be the case.
There has been a recent case which appeared in the financial press whereby a prominent store in the west end of London was selling very cheap perfume in beautiful elaborate boxes which gave the impression of extra ordinary value for a substantial gift. It turned out that the product inside was a cheap version of a major French fashion product. Following the Christmas sales numerous complaints were received and the products were returned. This demonstrates the advantages of elaborate packing selling the product not the product being sold on its own merit.
Advertising and publicity
How should the product be promoted or brought to the attention of the public? Advertising goods/services is the most important means of promotion, but it is expensive. Where should it be advertised? On the TV, or in national/local papers, or women's magazine - or a combination of all of these? Should the message be the same in all press advertisements or should it vary to appeal to different types of readers?
TV advertising is an extremely expensive medium for which to advertise. Radio advertising is a cheaper alternative but it does not have the spread of national television. It is very important for sales directors of any company to explore and consider the most efficient way of getting their products known to potential customers i.e. advertising. It is all well and good to consider television as the way forward but financial budgets must be drawn up and complied with.
The four P's
The factors involved in marketing a product can be grouped into four main categories:
* Product
* Price
* Promotion
* Place
These are known as the four P's.
The right mix
Marketing strategy is such a big topic that it is divided up into the four P's to make it easier to deal with each of them individually. However, the task of a marketing department is to blend together all aspects of the product in the right amounts to obtain the best marketing mix.
The mixing process does not occur only when a product is launched, it continues throughout the whole life of the product. If sales start to fall, a new sales promotion or changes in the design of the product may help increase sales again.
British telecom would be a reasonably good example of how they seriously need to re-market their products. It does seem on the surface that a company such as BT fails to get across to the public the true merits of their products especially when they are virtually in total command of the industry or monopoly.
The source
Most of the sources used in compiling these notes are of my own enquiries and conversations with businessmen in various industries. However extracts have been used from 'Business studies for GCSE Third edition' by Renee Hugget.
Questionnaire
This Questionnaire was sent out to 25 people
A QUESTIONNAIRE TO FIND OUT IF AN INTERNET CAFÉ WOULD BE NEEDED IN YOUR LOCAL AREA
. What age category do you fit into?
0 - 12 ? 12 - 15 ? 15 - 20 ? 20 - 30 ? 30 - 40 ? 40+ ? Elderly ?
2. How many times, if ever, would you use the Internet café?
Once a week ? Twice a week ? Three times a week ? Four times a week ?
Five times a week ? Six times a week ? Every day ? When appropriate ?
3. What would you do if you didn't have the Internet café available?
Use your pc if you have one ? Use a friends pc ? Buy a pc ? Nothing ?
4. Do you have any children that live with you and would use the Internet café?
Yes ? No ?
5. Do you think you would use the café a lot?
Yes ? No ?
6. Would you like food and drinks served at the Internet café?
Yes ? No ?
7. What would you use the Internet café for?
Social activities ? Chatting on the internet ? E-mail ? Research ?
Just for the food and/or drink ? Other ?
Why did I use a questionnaire?
I chose a questionnaire to use for my marketing campaign because it provides me with a positive reaction to various questions asked.
With this type marketing campaign, people are being advised about the company, whilst also gathering information about what people want from the business, and it is very cost effective. People actually absorb the information as they read the questionnaire and it does seem to clearly promote the business.
A questionnaire is better than distributed leaflets, because these are normally disposed of immediately, whereas with a questionnaire the respondent is actually asked if they have time to fill one out immediately unless the company sends it through the post, thus giving us a positive reaction
From the questionnaire I am expecting to gather various information such as:
* What age group the customers fit into.
* How many times they would use the Internet café.
* How many customers would the Internet café have.
* What would the customers do without the Internet café being available.
* If the customers had children would they use the Internet café.
* How many customers would buy food and drink at the Internet café.
* What would the customers use the Internet café for.
Other methods of marketing could have been used, these include:
* Phone surveys: I didn't use this because it is a long process, and is very expensive. It would also cause annoyance to people, as sometimes they do not like to be telephoned at home.
* Leaflets: I didn't use this method of promotion because I felt that people would dispose of them virtually on receipt, which would cause me more problems.
* TV advertising: This would cost a huge amount of money and it would not just reach the area you have your company, it would go over the whole of the UK, which isn't necessary.
* Local newspapers: This is a very effective method of promotion, but it is still reasonably expensive.
I believe that the best method of finding out what the customer wants from a business is by the use of a questionnaire. This method is not only cost effective but also does produce a very positive reaction. The comments and reaction can be implemented into the business to give the customers what they actually want, thus producing a business that is market orientated.
My competitor
My main competitor is Madison's, because they operate a similar type of business, but they are not in the locations where I propose to se up. Geographically there is a void in the market, which I intend to fill by opening my own café's.
An Internet café does not exist in Wimbledon village, and I believe that if one were to open, it would be very successful.
Madison's aim is to keep customers happy, supply customers with good quality food and drinks. However their prices are excessive and not competitive. My proposal is based on competitive prices whilst providing excellent food and drink.
Madison's is in Wimbledon town centre, which is the closest to Wimbledon village, apart from one in Putney high street.
Madison's offer a wide variety of teas, coffees, other hot drinks, sandwiches, hot food, pasties, and many more. It also offers expensive surfing time.
The target market for Madison's is for people of all ages including children, as everyone needs to use the Internet.
The target market would influence where the shop is located. For instance it would be illogical to provide an Internet café in a quiet country village if you were targeting young people. The target market would influence what range of products the shop was selling, for example young people tend to enjoy more 'exotic coffee ranges' than older people. I think an Internet café is for all age categories because nowadays the Internet is an essential tool for communication.
I believe that when my café opens, it will attract customers away from other coffee shops and café's as my business will be not only providing food and drink but also an element of entertainment.
Questionnaire Results
. What age category do you fit into?
2. How many times, if ever, would you use the Internet café?
3. What would you do if you didn't have the Internet café available?
4. Do you have any children that live with you and would use the Internet café?
5. Do you think you would use the café a lot?
6. Would you buy the food and drinks served at the Internet café?
7. What would you use the Internet café for? You may tick more than one box
The results from the questionnaire will demonstrate to me my potential target audience. I can design the products suitable for the customer's wishes.
The information the questionnaire provides is:
* What age group the customers fit into.
* How many times they would use the Internet café.
* How many customers would the Internet café have.
* What would the customers do without the Internet café being available.
* If the customers had children would they use the Internet café.
* How many customers would buy food and drink at the Internet café.
* What would the customers use the Internet café for.
The survey that I carried out is a form of advertising because it is not only informs people of my proposed business but it also gathers information of the local population. A good thing about carrying out a survey is its cost effectiveness.
Main ways of promotion
The main ways in which any business can promote and advertise its products/services:
* National and local newspapers
* Internet
* Telephone advertisements
* Leaflets through the post
* Questionnaires
* Magazines
* Press release
* Bill boards
* Stands at exhibitions
* Sponsorship
* Radio
Marketing plan
When it comes to advertising, the law can change how the advert is presented. The advertising standards authority sets various precedents, which must be adhered to. There can be no strong language or obscene images, the information must be true and not detrimental to any other business or person, on any published advert. The reason for these rules being issued is that the public do not want to be confronted with material which could be upsetting and false. There are many other rules and regulations, but this is just a brief example which must be complied with.
The cost to place an advert in the local newspaper is £150.00. The cost of 1 leaflet is 2p, and we need about 200 leaflets. So the calculation would be 2 x 200 = 400p which is £4.00, to hand out 200 leaflets. Although this is very cheap, it wouldn't generate the degree of awareness the business would need to survive.
The Businesses name is "Appleton's" because it is a fresh name and it is quite catchy.
I propose to promote Appleton's by opening the café in Wimbledon village and hire staff to distribute little gifts and leaflets to celebrate the opening of Appleton's. Appleton's is going to be advertised on billboards in Wimbledon town, which will cost £200 for two weeks. Leaflets will be distributed around the local area, which will cost £15 for someone to deliver them. An advert will also be placed in local newspapers, which will cost £150. To summarise, the total cost of promoting Appleton's is calculated as follows:
Billboard advertising £ 200.00
Newspaper adverts £ 150.00
Promotional gifts £ 100.00 +
Leaflet distribution £ 15.00
Leaflet production £ 4.00
Total £ 469.00
The total cost of £469.00 is very cheap for this type of advertising scheme and will sit very comfortably within my financial budgets. Eventually when the company has substantial cash flow and more capital, I propose to expand the business all over the UK. This will undoubtedly lead to a proposed stock market listing, and I intend to retain 51% of the shares to be held in an offshore account. The 51% retention of shareholding will enable me to be in control of the company and the offshore account will be beneficial for tax reasons. The long term plan will be to open Appleton's Internationally by issuing franchises for an agreed sum, hopefully Appleton's will become a world leader in this market.
James McMullen G.C.S.E. Business Studies coursework
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