What marketing is for Edexcel International GCSE Business revision
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In plain words
Marketing is not just advertising. It is the whole business of finding out what customers want and then supplying it, at a price they will pay, in a place they can get it, and letting them know.
Customers change, and competitors arrive. A business that stops listening to its market loses it.
6 things to know
- The role of marketing: to identify customer needs, to satisfy them, to keep customers loyal, and to build a relationship with them.
- Keeping an existing customer is cheaper than winning a new one, which is why loyalty matters.
- A market-orientated business finds out what customers want first, then makes it. A product-orientated business makes the product first, then tries to sell it.
- Spending patterns change with incomes, fashion, technology and the ages of the population.
- Markets have become more competitive because of globalisation, cheaper transport, and the internet, which lets customers compare prices easily.
- A business responds by developing new products, improving old ones, keeping costs and prices down, and looking after its customers.
Tips and tricks
- Market-orientated is the safer approach, because products are made to meet a known demand. The cost is the market research.
- Market share = the business's sales ÷ total sales in the market × 100.
It lands in your notebook with its questions as flashcards.
What marketing is for: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
Which is a role of marketing?
Marketing starts with finding out what customers want.
A business researches what customers want before designing its product. It is
The market comes first.
Why is customer loyalty valuable?
Repeat sales cost little to win.
A firm's sales are $5 million in a market with total sales of $40 million. What is its market share?
5 ÷ 40 × 100 = 12.5%.
How might a business respond to new competitors entering its market?
It has to give customers a reason to stay.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
What marketing is for
Edexcel International GCSE Business 4BS1 · 8 marks · papermunch.org
Name ______________________________ Date ______________
State two roles of marketing in a business.[2]
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Any two of: identifying customer needs, satisfying customer needs, maintaining customer loyalty, building customer relationships.
Explain the difference between a market-orientated and a product-orientated business.[3]
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A market-orientated business carries out market research to find out what customers want and then produces it. A product-orientated business concentrates on making the product first, then looks for customers.
Explain two reasons why many markets have become more competitive.[3]
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The internet lets customers compare prices and buy from sellers anywhere. Globalisation and cheaper transport mean that firms from other countries can sell in the market.
Answers: What marketing is for
- 1. Any two of: identifying customer needs, satisfying customer needs, maintaining customer loyalty, building customer relationships.
- 2. A market-orientated business carries out market research to find out what customers want and then produces it. A product-orientated business concentrates on making the product first, then looks for customers.
- 3. The internet lets customers compare prices and buy from sellers anywhere. Globalisation and cheaper transport mean that firms from other countries can sell in the market.