Marketing Concepts Overview

Hi everyone. This is the fourth video in a series that will cover all of the concepts you need to know for your IB business management final exam. This video covers all of the key concepts for unit 4, marketing. At the end of this video, we will share with you the next steps depending on how familiar you are with the content. First up is unit 4.1, introduction to marketing. Businesses can take one of two approaches with regards to their core offering. Market orientation involves meeting the needs and wants of customers where businesses focus on what they can sell. This is used by most companies as it aligns well with customer demand, but also relies on promotion and advertising to keep customers in form of new offerings. A good example of this is fast food chains like McDonald's or KFC. Product orientation is focused on making what a business is good at making because that is a key strength of this business. This can help create a unique selling point or differentiation from customers, but can lead to missed new market opportunities. A good example of this is Netflix. Businesses compete for market share, which measures the size of a business relative to the industry, often on the metric of sales revenue. Higher level students should also be aware that businesses strive to become the market leader, which is the firm with the largest market share as it can allow for a firm to take advantage of economies of scale, get better access to customer data, and build new relationships and partnerships. Businesses also aim to operate in growing markets, which is calculated through sales revenue or the number of customers. This is a strong indicator of the future potential of the business. Note that you might be given case information to calculate either of these two concepts. Let's take a look at a simple example. Imagine a firm who operates in a market that has grown from $800 million to $1.2 billion in sales from 2020 to 2025. In 2025, this firm recorded sales revenue of $180 million. You might be asked to find the firm's market share or the growth of this market. To calculate the market share, this can be calculated by $180 million divided by $1.2 billion, which gives you 15%. For market share, you can calculate this calculate this by $1.2 billion minus $800 million divided by $800 million, which gives you 50% as the market growth. Once they have chosen the right market and approach, a business needs to reach the right customers. To do this, they undergo a process called marketing planning, which involves analyzing potential markets and coming up with a strategy to target these markets. To do this, businesses must segment, target, and position their mark products. The first step is to identify the right market segment and target market. A market segment is a group of customers with similar characteristics. Businesses can segment in many ways including socioeconomically such as income or education. Psychoraphically such as personality traits, values or attitudes, demographics, such as age and gender, and geographic such as the location. From this, a business can identify the right target market, which is the specific group that a business focuses its marketing efforts on. For example, a plant-based protein powder could emphasize different aspects of its products to different segments from high protein content for athletes or gymgoers to the nutritional benefits for vegetarians or the convenience for working professionals. This process is known as targeting and can help ensure the target market believes the product or service best fits their needs. Product perception maps help visualize how customers view a brand relative to customers, often on the basis of price and quality. A business can use this to inform its marketing strategies to change the way it positions its products. You might be asked to comment on or construct a product position map in an exam using case information. Make sure you remember to label your axes and title your map as this is the easiest way to lose marks even if your drawing is correct. Businesses also have to decide whether their products fall into a mass or niche market. Mass marketing is a strategy targeting the general public, which involves not differentiating the product, treating the market as uniform. This is common among products like sodas or toothpaste. This allows firms to reach more customers, but leads to a lack of differentiation in the product. Niche marketing focuses on targeting a small and highly specific market segment with unique traits or needs. Examples include Chinese tutoring in South Africa or vegan face wash. Due to the limited competition, companies have the ability to charge a higher price, but their market reach is limited due to their specialized focus. All businesses aim to have a unique selling point, which is a distinct feature that helps a brand or product stand out from competitors in the eyes of its customers. This can help contribute to improve brand awareness, recognition, and loyalty. Businesses can develop USPS through differentiation. By developing a unique product, businesses can charge higher prices, but this is typically an expensive product. Nearly all businesses aim to generate some sort of USP to help them stand out. Sales forecasting is for higher level students only, so SL students feel free to skip to unit 4.4. Sales forecasting is a quantitative technique to help businesses predict sales over a period of time. This can help identify trends and patterns in sales data, but can be difficult to accurately collect the data. An important skill here is to be able to read a sales forecast and call out any trends in the data. There are a couple of trends to be on the lookout for. The first is seasonal variation, which are regular fluctuations due to socioultural factors that happen throughout the year. For example, this could include increased toy purchases at Christmas or increased uniform purchases as the school year begins. The second are cyclical variation which relate to the business cycle. During periods of strong economic activity, consumers tend to spend more and when the economy is worse, consumers spends less. Finally, random variation are unforeseen unpredictable factors like natural disaster or a major product defect that can occur any time. In order to better understand the markets they operate in, businesses conduct market research, which involves collecting and analyzing data about customers, competitors, and markets. It can allow a business to better understand customer preferences and new market trends. Market research can be split into primary market research, which involves gathering information done by the businesses directly, and secondary market research, which is using information gathered through a third party or a different organization. Primary market research allows for specific information relevant to the business, but it is costly and more timeconuming. Examples include surveys, interviews, or observations. Secondary market research is faster and cheaper, but doesn't always lead to relevant insights for the business. Examples include government publications and media articles. When conducting market research, businesses aim to gather both quantitative and qualitative research. Quantitative data relates to numerical facts and figures, while qualitative data relates to open-ended questions to better understand customer behavior. In the process of market research, businesses take samples or smaller subsections of the full market. The three types of sampling methods are random sampling where everyone have an equal chance of being picked, quota sampling which splits people up by characteristics to ensure accurate representation of the market and convenience sampling which is a sampling u or sampling whoever is easiest to get to. Any form of research can lead to errors. These errors can be classified as sampling errors which are errors in the design of the sample or non-sampling errors which are not related to research design. For example, if a survey under represents the 18 to 29 years old group, this is an sampling error. However, if customers lie about how much they like a product, this is a non-sampling error. Armed with this information, businesses develop a product which goes through the product life cycle. The product life cycle shows the various stages a product goes through from launch to removal. In the research and development stage or R&D, the business spends to develop the product. In the introduction and growth stages, the business focuses on marketing to improve awareness as sales grow. In the maturity stage, sales peak as competition intensifies before the product inevitably reaches the decline stage before it is eventually removed from the market. In order to extend the product life cycle, a business might consider an extension strategy to prolong the product life cycle, which aims to delay the decline stage. This might include changing product features and overseas expansion or targeting new demographics. Businesses also need to invest in branding, which helps create an identity for their company and develops a source of differentiation from customers. First, a business must develop brand awareness so that people are aware of and familiar with the product. From there, they can engage in brand development to help consumers better understand the firm's image and further differentiate the brand. When customers repeatedly purchase from a brand over competitors, this is when a firm has achieved brand loyalty. Firms with strong brand loyalty often have strong brand value. As a result, branding plays a critical role in driving business success. With a brand and a product, a business then has to decide on how to price their offering. There are nine pricing methods, the last four of which are only for higher level students. The first is cost plus or market pricing, which involves adding a predetermined profit margin on top of production costs. This helps ensure the firm is breaking even on each unit sold, but it ignores the actions of competitors and the market by focusing only on internal factors. The second is penetration pricing, which involves setting up low price in order to rapidly gain market share in a new industry. The low prices can lead to rapid market share and word of mouth, but it becomes difficult for the businesses to raise prices in the longer run. The loss leader is when the price of one product is set below the cost of production in order to get customers to purchase other high margins alongside this product. This can help improve revenue and market share, but is highly dependent on customers purchasing other products alongside this lossleer item. Predatory pricing refers to charging very low prices in order to restrict competition. This can lead to rapid market share and prevent entry of new competitors, but is illegal in many markets and unsustainable in the longer run as it often involves operating at a loss. Finally, premium pricing involves setting a high price for the product in order to highlight its quality. This allows the business to earn higher profit margin but also potentially limits the customer base of the firm. The rest of these strategies are for higher level students only. So SL students, you're welcome to skip to the next chapter. Dynamic pricing involves setting the price based on the demand for the good or service. This allows for higher margins during peak demand, but can reduce customer loyalty as customers become more price sensitive. Competitive pricing involves setting the price based on what similar competitors charge. This protects market share by ensuring the price is competitive against rivals but makes it more difficult to create a unique selling point. Contribution pricing involves setting the price higher than variable costs per unit. This helps to ensure a business is on track to break even as each unit sold contributes to covering fixed costs. But this strategy also ignores external or market conditions. Finally, the price elasticity of demand measures how a change in the price of a product changes its demand. When it is above one, demand is elastic, meaning consumers are sensitive to price changes, which is true for non-essential items such as eating out or buying a car. It is below one, demand is inelastic, meaning price increases don't impact demand as much, which is true of essential items like medicine. Note that most price elasticity of demand calculations will be negative, meaning that an increase in price leads to a drop in demand. With a pricing strategy in place, a business then has to consider how to make customers familiar with their offering. Promotion is the process of raising awareness and interest in a product or a brand. There are four types of promotion. The first is above the line ATL marketing where the promotion efforts rely on a third party to communicate the business marketing message. Examples include television, cinema, newspaper, and online. This helps a business maximize brand awareness due to the third party's large reach, but is also expensive and doesn't specifically speak to the target market. The second is below the line BTL marketing where the businesses engage in the promotion themselves. Examples include email, trade shows, and loyalty programs. This helps a business reach its target market in a more cost-effective way, but limits the broad appeal of the campaign and is more labor intensive to plan and execute. Through the line, TTL promotion combines ATL and BTL promotion. This combines the benefits of both ATL and BTL, but most businesses don't have the resources for this strategy, limiting it to only large businesses. Finally, social media marketing involves apps and websites to promote products. This allows a business to more informally interact and connect with its customers, but the business has no control over what is said by customers. Finally, a business must consider how they make their offerings available to customers. Businesses rely on distribution channels which help ensure a finished product reaches customers. The two potential partners in this process are wholesalers and retailers. Wholesalers are businesses that buy large quantities from manufacturers and sell to retailers in smaller quantities. Retailers are businesses like Walmart or Target that sell products directly to consumers. In both instances, once the business sells to the retailer or wholesalers, they lose control over the pricing and promotion of the product. This brings us to the concept of short and long distribution channels. Businesses can employ short distribution channels which involve fewer intermediaries like wholesalers and retailers. This allow for faster delivery at lower costs and greater control over pricing but limits market reach and is more resource incentive for a business. For example, a car company selling directly to customers would have greater control over their pricing, but would only be able to target customers who knew they were interested in this type of car. Long distributions rely on intermediaries to broaden the reach of the product, but lead to higher cost and reduce control for the business. Here, the car company would sell its cars to dealerships everywhere, potentially reaching customers who didn't know much about their car previously, but would also lose control over how their cars is positioned and priced. Ultimately, make sure you consider the type of product customer behavior when recommending distribution channels. For example, grocery stores prefer shorter distribution channels because they sell perishable goods. For services, there are an additional three Ps you need to be aware of. People are anyone directly involved in the interaction of customers, which are most commonly those who deliver the service. The behavior and performance of these employees are key in impacting customer perception and also influence the willingness of the customer to return. For example, you might return to a restaurant not just because the food was good, but because the waiter or waitress was attentive and helpful. Processes refer to the systems a business has to deliver its offering. This can help improve the customer experience by maximizing convenience and accommodating preferences where needed. For example, recommendation based on your previous shopping pattern or enabling payment by car might improve the customer experience. Finally, physical evidence is about the tangible aspect of the business that customers can see and interact with. The location and physical environment can shape and influence customer perceptions and hence their willingness to return. For example, consider a luxury hotel whose decor and design communicate the idea of affluence and luxury. The last topic in this unit is a higher level only topic related to international marketing. In unit one, you already learned about how businesses can expand using strategic alliances, joint ventures, and franchising. Businesses can also use foreign direct investment, which is directly setting up operations by investing in a factory or other part of business operations in another country, or exporting, which involves shipping their products from their home market overseas. International marketing can bring about numerous opportunities and challenges for firms. On the one hand, it brings additional revenues and profits from new markets, reduce risk through diversification and reduced production costs. However, businesses also need to be aware of external SEO factors that differ from their home market as well as a requirement for additional costs related to expansion such as market research or working capital. Budgets and variances are important as they can help give clear targets to different business departments and help provide a benchmark to evaluate employees against. It can also show where a business is performing well or needs further improvement. You have made it this far. Congratulations. The content part of this video is over. A quick word on exam strategy in relation to this unit. One common question we get is what types of content is most likely tested in the exam in unit 4. Historically, unit 4.2 2 on marketing planning, unit 4.4 on market research, and unit 4.5 the seven Ps of the marketing mix are the most commonly tested on the IB exams. And if you have to prioritize, we strongly recommend you to become most familiar with the concepts from these topics. Also remember that the quantitative concepts like market share and calculating market growth can easily be tested as two markers in section B. At this point, you might be wondering, "Where should I go from here?" Take a moment to reflect on whether you are comfortable with all of these topics. If the answer is no, you can find more detailed versions of every topic I have covered on our website at diplomy.org. With each videos arranged by which topic and unit they fall under. These videos would explain each concept in more depth and outline in more detail how and where they might be tested in your IB exam. For qualitative concepts, we recommend looking at the review videos. And for quantitative concepts, look at the quantitative skills videos we have on our diplomally website. If you're comfortable with this material, you should move on practicing case studies and mock exams. If you want to practice specific concepts in this video, head over to the case study section of our website where you can choose cases by topic or by unit. If you want to practice the unit overall, then go to the by unit section. To take this one step further, you can also try the comprehensive cases which focus on the full business management syllabus in the exams same style as the final paper 2 or try a fulllength mock exam. Be sure to review each of your responses not just against the mark scheme but the fulllength exemplar response we have provided for you which represents realistically a response from a student who would score full marks in the exam. If at any point you are unsure how to respond a question, check out the response structures section on our website which helps you understand how to answer every type of questions in the business management course. We hope this video was useful for you in studying for business management. If you're looking for additional help with BM, please feel free to reach out to us via our email at [email protected] or via WhatsApp. If this video was useful for you, please like the video and subscribe to our channel. Thanks for watching and best of luck in your final exam.

Hi everyone. This is the fourth video in a series that will cover all of the concepts you need to know for your IB business management final exam. This video covers all of the key concepts for unit 4, marketing. At the end of this video, we will share with you the next steps depending on how familiar you are with the content. First up is unit 4.1, introduction to marketing. Businesses can take one of two approaches with regards to their core offering. Market orientation involves meeting the needs and wants of customers where businesses focus on what they can sell. This is used by most companies as it aligns well with customer demand, but also relies on promotion and advertising to keep customers in form of new offerings. A good example of this is fast food chains like McDonald's or KFC. Product orientation is focused on making what a business is good at making because that is a key strength of this business. This can help create a unique selling point or differentiation from customers, but can lead to missed new market opportunities. A good example of this is Netflix. Businesses compete for market share, which measures the size of a business relative to the industry, often on the metric of sales revenue. Higher level students should also be aware that businesses strive to become the market leader, which is the firm with the largest market share as it can allow for a firm to take advantage of economies of scale, get better access to customer data, and build new relationships and partnerships. Businesses also aim to operate in growing markets, which is calculated through sales revenue or the number of customers. This is a strong indicator of the future potential of the business. Note that you might be given case information to calculate either of these two concepts. Let's take a look at a simple example. Imagine a firm who operates in a market that has grown from $800 million to $1.2 billion in sales from 2020 to 2025. In 2025, this firm recorded sales revenue of $180 million. You might be asked to find the firm's market share or the growth of this market. To calculate the market share, this can be calculated by $180 million divided by $1.2 billion, which gives you 15%. For market share, you can calculate this calculate this by $1.2 billion minus $800 million divided by $800 million, which gives you 50% as the market growth. Once they have chosen the right market and approach, a business needs to reach the right customers. To do this, they undergo a process called marketing planning, which involves analyzing potential markets and coming up with a strategy to target these markets. To do this, businesses must segment, target, and position their mark products. The first step is to identify the right market segment and target market. A market segment is a group of customers with similar characteristics. Businesses can segment in many ways including socioeconomically such as income or education. Psychoraphically such as personality traits, values or attitudes, demographics, such as age and gender, and geographic such as the location. From this, a business can identify the right target market, which is the specific group that a business focuses its marketing efforts on. For example, a plant-based protein powder could emphasize different aspects of its products to different segments from high protein content for athletes or gymgoers to the nutritional benefits for vegetarians or the convenience for working professionals. This process is known as targeting and can help ensure the target market believes the product or service best fits their needs. Product perception maps help visualize how customers view a brand relative to customers, often on the basis of price and quality. A business can use this to inform its marketing strategies to change the way it positions its products. You might be asked to comment on or construct a product position map in an exam using case information. Make sure you remember to label your axes and title your map as this is the easiest way to lose marks even if your drawing is correct. Businesses also have to decide whether their products fall into a mass or niche market. Mass marketing is a strategy targeting the general public, which involves not differentiating the product, treating the market as uniform. This is common among products like sodas or toothpaste. This allows firms to reach more customers, but leads to a lack of differentiation in the product. Niche marketing focuses on targeting a small and highly specific market segment with unique traits or needs. Examples include Chinese tutoring in South Africa or vegan face wash. Due to the limited competition, companies have the ability to charge a higher price, but their market reach is limited due to their specialized focus. All businesses aim to have a unique selling point, which is a distinct feature that helps a brand or product stand out from competitors in the eyes of its customers. This can help contribute to improve brand awareness, recognition, and loyalty. Businesses can develop USPS through differentiation. By developing a unique product, businesses can charge higher prices, but this is typically an expensive product. Nearly all businesses aim to generate some sort of USP to help them stand out. Sales forecasting is for higher level students only, so SL students feel free to skip to unit 4.4. Sales forecasting is a quantitative technique to help businesses predict sales over a period of time. This can help identify trends and patterns in sales data, but can be difficult to accurately collect the data. An important skill here is to be able to read a sales forecast and call out any trends in the data. There are a couple of trends to be on the lookout for. The first is seasonal variation, which are regular fluctuations due to socioultural factors that happen throughout the year. For example, this could include increased toy purchases at Christmas or increased uniform purchases as the school year begins. The second are cyclical variation which relate to the business cycle. During periods of strong economic activity, consumers tend to spend more and when the economy is worse, consumers spends less. Finally, random variation are unforeseen unpredictable factors like natural disaster or a major product defect that can occur any time. In order to better understand the markets they operate in, businesses conduct market research, which involves collecting and analyzing data about customers, competitors, and markets. It can allow a business to better understand customer preferences and new market trends. Market research can be split into primary market research, which involves gathering information done by the businesses directly, and secondary market research, which is using information gathered through a third party or a different organization. Primary market research allows for specific information relevant to the business, but it is costly and more timeconuming. Examples include surveys, interviews, or observations. Secondary market research is faster and cheaper, but doesn't always lead to relevant insights for the business. Examples include government publications and media articles. When conducting market research, businesses aim to gather both quantitative and qualitative research. Quantitative data relates to numerical facts and figures, while qualitative data relates to open-ended questions to better understand customer behavior. In the process of market research, businesses take samples or smaller subsections of the full market. The three types of sampling methods are random sampling where everyone have an equal chance of being picked, quota sampling which splits people up by characteristics to ensure accurate representation of the market and convenience sampling which is a sampling u or sampling whoever is easiest to get to. Any form of research can lead to errors. These errors can be classified as sampling errors which are errors in the design of the sample or non-sampling errors which are not related to research design. For example, if a survey under represents the 18 to 29 years old group, this is an sampling error. However, if customers lie about how much they like a product, this is a non-sampling error. Armed with this information, businesses develop a product which goes through the product life cycle. The product life cycle shows the various stages a product goes through from launch to removal. In the research and development stage or R&D, the business spends to develop the product. In the introduction and growth stages, the business focuses on marketing to improve awareness as sales grow. In the maturity stage, sales peak as competition intensifies before the product inevitably reaches the decline stage before it is eventually removed from the market. In order to extend the product life cycle, a business might consider an extension strategy to prolong the product life cycle, which aims to delay the decline stage. This might include changing product features and overseas expansion or targeting new demographics. Businesses also need to invest in branding, which helps create an identity for their company and develops a source of differentiation from customers. First, a business must develop brand awareness so that people are aware of and familiar with the product. From there, they can engage in brand development to help consumers better understand the firm's image and further differentiate the brand. When customers repeatedly purchase from a brand over competitors, this is when a firm has achieved brand loyalty. Firms with strong brand loyalty often have strong brand value. As a result, branding plays a critical role in driving business success. With a brand and a product, a business then has to decide on how to price their offering. There are nine pricing methods, the last four of which are only for higher level students. The first is cost plus or market pricing, which involves adding a predetermined profit margin on top of production costs. This helps ensure the firm is breaking even on each unit sold, but it ignores the actions of competitors and the market by focusing only on internal factors. The second is penetration pricing, which involves setting up low price in order to rapidly gain market share in a new industry. The low prices can lead to rapid market share and word of mouth, but it becomes difficult for the businesses to raise prices in the longer run. The loss leader is when the price of one product is set below the cost of production in order to get customers to purchase other high margins alongside this product. This can help improve revenue and market share, but is highly dependent on customers purchasing other products alongside this lossleer item. Predatory pricing refers to charging very low prices in order to restrict competition. This can lead to rapid market share and prevent entry of new competitors, but is illegal in many markets and unsustainable in the longer run as it often involves operating at a loss. Finally, premium pricing involves setting a high price for the product in order to highlight its quality. This allows the business to earn higher profit margin but also potentially limits the customer base of the firm. The rest of these strategies are for higher level students only. So SL students, you're welcome to skip to the next chapter. Dynamic pricing involves setting the price based on the demand for the good or service. This allows for higher margins during peak demand, but can reduce customer loyalty as customers become more price sensitive. Competitive pricing involves setting the price based on what similar competitors charge. This protects market share by ensuring the price is competitive against rivals but makes it more difficult to create a unique selling point. Contribution pricing involves setting the price higher than variable costs per unit. This helps to ensure a business is on track to break even as each unit sold contributes to covering fixed costs. But this strategy also ignores external or market conditions. Finally, the price elasticity of demand measures how a change in the price of a product changes its demand. When it is above one, demand is elastic, meaning consumers are sensitive to price changes, which is true for non-essential items such as eating out or buying a car. It is below one, demand is inelastic, meaning price increases don't impact demand as much, which is true of essential items like medicine. Note that most price elasticity of demand calculations will be negative, meaning that an increase in price leads to a drop in demand. With a pricing strategy in place, a business then has to consider how to make customers familiar with their offering. Promotion is the process of raising awareness and interest in a product or a brand. There are four types of promotion. The first is above the line ATL marketing where the promotion efforts rely on a third party to communicate the business marketing message. Examples include television, cinema, newspaper, and online. This helps a business maximize brand awareness due to the third party's large reach, but is also expensive and doesn't specifically speak to the target market. The second is below the line BTL marketing where the businesses engage in the promotion themselves. Examples include email, trade shows, and loyalty programs. This helps a business reach its target market in a more cost-effective way, but limits the broad appeal of the campaign and is more labor intensive to plan and execute. Through the line, TTL promotion combines ATL and BTL promotion. This combines the benefits of both ATL and BTL, but most businesses don't have the resources for this strategy, limiting it to only large businesses. Finally, social media marketing involves apps and websites to promote products. This allows a business to more informally interact and connect with its customers, but the business has no control over what is said by customers. Finally, a business must consider how they make their offerings available to customers. Businesses rely on distribution channels which help ensure a finished product reaches customers. The two potential partners in this process are wholesalers and retailers. Wholesalers are businesses that buy large quantities from manufacturers and sell to retailers in smaller quantities. Retailers are businesses like Walmart or Target that sell products directly to consumers. In both instances, once the business sells to the retailer or wholesalers, they lose control over the pricing and promotion of the product. This brings us to the concept of short and long distribution channels. Businesses can employ short distribution channels which involve fewer intermediaries like wholesalers and retailers. This allow for faster delivery at lower costs and greater control over pricing but limits market reach and is more resource incentive for a business. For example, a car company selling directly to customers would have greater control over their pricing, but would only be able to target customers who knew they were interested in this type of car. Long distributions rely on intermediaries to broaden the reach of the product, but lead to higher cost and reduce control for the business. Here, the car company would sell its cars to dealerships everywhere, potentially reaching customers who didn't know much about their car previously, but would also lose control over how their cars is positioned and priced. Ultimately, make sure you consider the type of product customer behavior when recommending distribution channels. For example, grocery stores prefer shorter distribution channels because they sell perishable goods. For services, there are an additional three Ps you need to be aware of. People are anyone directly involved in the interaction of customers, which are most commonly those who deliver the service. The behavior and performance of these employees are key in impacting customer perception and also influence the willingness of the customer to return. For example, you might return to a restaurant not just because the food was good, but because the waiter or waitress was attentive and helpful. Processes refer to the systems a business has to deliver its offering. This can help improve the customer experience by maximizing convenience and accommodating preferences where needed. For example, recommendation based on your previous shopping pattern or enabling payment by car might improve the customer experience. Finally, physical evidence is about the tangible aspect of the business that customers can see and interact with. The location and physical environment can shape and influence customer perceptions and hence their willingness to return. For example, consider a luxury hotel whose decor and design communicate the idea of affluence and luxury. The last topic in this unit is a higher level only topic related to international marketing. In unit one, you already learned about how businesses can expand using strategic alliances, joint ventures, and franchising. Businesses can also use foreign direct investment, which is directly setting up operations by investing in a factory or other part of business operations in another country, or exporting, which involves shipping their products from their home market overseas. International marketing can bring about numerous opportunities and challenges for firms. On the one hand, it brings additional revenues and profits from new markets, reduce risk through diversification and reduced production costs. However, businesses also need to be aware of external SEO factors that differ from their home market as well as a requirement for additional costs related to expansion such as market research or working capital. Budgets and variances are important as they can help give clear targets to different business departments and help provide a benchmark to evaluate employees against. It can also show where a business is performing well or needs further improvement. You have made it this far. Congratulations. The content part of this video is over. A quick word on exam strategy in relation to this unit. One common question we get is what types of content is most likely tested in the exam in unit 4. Historically, unit 4.2 2 on marketing planning, unit 4.4 on market research, and unit 4.5 the seven Ps of the marketing mix are the most commonly tested on the IB exams. And if you have to prioritize, we strongly recommend you to become most familiar with the concepts from these topics. Also remember that the quantitative concepts like market share and calculating market growth can easily be tested as two markers in section B. At this point, you might be wondering, "Where should I go from here?" Take a moment to reflect on whether you are comfortable with all of these topics. If the answer is no, you can find more detailed versions of every topic I have covered on our website at diplomy.org. With each videos arranged by which topic and unit they fall under. These videos would explain each concept in more depth and outline in more detail how and where they might be tested in your IB exam. For qualitative concepts, we recommend looking at the review videos. And for quantitative concepts, look at the quantitative skills videos we have on our diplomally website. If you're comfortable with this material, you should move on practicing case studies and mock exams. If you want to practice specific concepts in this video, head over to the case study section of our website where you can choose cases by topic or by unit. If you want to practice the unit overall, then go to the by unit section. To take this one step further, you can also try the comprehensive cases which focus on the full business management syllabus in the exams same style as the final paper 2 or try a fulllength mock exam. Be sure to review each of your responses not just against the mark scheme but the fulllength exemplar response we have provided for you which represents realistically a response from a student who would score full marks in the exam. If at any point you are unsure how to respond a question, check out the response structures section on our website which helps you understand how to answer every type of questions in the business management course. We hope this video was useful for you in studying for business management. If you're looking for additional help with BM, please feel free to reach out to us via our email at info@diplomy.org or via WhatsApp. If this video was useful for you, please like the video and subscribe to our channel. Thanks for watching and best of luck in your final exam.

Transcript for:Marketing Concepts Overview

Transcript for:
Marketing Concepts Overview