IB Business Management Unit 4: Marketing

Introduction

• Fourth video in a series for IB Business Management final exam preparation.
• This video focuses on key concepts for unit 4: marketing.

Unit 4.1: Introduction to Marketing

• Market Orientation: Focus on meeting customer needs and wants.
  • Example: McDonald's, KFC
• Product Orientation: Emphasizes making what a business is good at.
  • Example: Netflix
• Market Share & Leadership:
  • Market share denotes the size of a business relative to the industry.
  • Market leader has the largest market share, allowing for economies of scale.
  • Growing markets indicated by increased sales revenue or number of customers.
• Example Calculation:
  • Market Share: $180 million / $1.2 billion = 15%
  • Market Growth: ($1.2 billion - $800 million) / $800 million = 50%

Marketing Planning

• Process: Analyze potential markets and strategize to target them.
• Segmentation, Targeting, and Positioning (STP):
  • Segmentation: Identifying similar customer groups (socioeconomic, demographic, etc.).
  • Target Market: Specific group targeted by marketing efforts.
  • Example: Plant-based protein powder targeted differently for athletes, vegetarians.
  • Product Perception Maps: Visual tools for brand positioning.
• Mass vs. Niche Marketing:
  • Mass Marketing: Targets generalized public (e.g., sodas, toothpaste).
  • Niche Marketing: Targets specific segments (e.g., vegan face wash).
• Unique Selling Point (USP): Distinct feature to differentiate a product.

Sales Forecasting (HL Only)

• Objective: Predict future sales to identify trends.
• Trend Types:
  • Seasonal: Fluctuations due to sociocultural factors.
  • Cyclical: Related to the economic cycle.
  • Random: Unpredictable factors affecting sales.

Market Research

• Purpose: Gather data on customers, competitors, and markets.
• Type:
  • Primary: Direct data collection by the business.
  • Secondary: Data from third-party sources.
• Data Types: Quantitative (numerical) and Qualitative (behavioral insights).
• Sampling Methods: Random, Quota, and Convenience Sampling.
  • Errors: Sampling errors and Non-sampling errors.

Product Life Cycle

• Stages: R&D, Introduction, Growth, Maturity, Decline.
• Extension Strategies: Delay decline stage by changing features or expanding.

Branding

• Development: Create brand awareness and loyalty.
• Importance: Strong brand value enhances business success.

Pricing Strategies

• Methods:
  • Cost-Plus, Penetration, Loss Leader, Predatory, Premium (for SL and HL).
  • HL Only: Dynamic, Competitive, Contribution, Price Elasticity of Demand.

Promotion

• Types:
  • Above the Line (ATL): Uses third-party channels.
  • Below the Line (BTL): Direct business initiatives.
  • Through the Line (TTL): Combination of ATL and BTL.
  • Social Media Marketing: Interactive customer engagement.

Distribution Channels

• Short vs. Long Channels:
  • Short: Fewer intermediaries, more control.
  • Long: Broader reach, less control.
• Wholesalers and Retailers: Key players in distribution.

The 7 Ps of Marketing Mix (Focus on Services)

• People: Employees involved in customer interaction.
• Processes: Systems for delivering offerings.
• Physical Evidence: Tangible aspects affecting customer perception.

International Marketing (HL Only)

• Expansion Methods: Alliances, Joint Ventures, Franchising, FDI, Exporting.
• Opportunities & Challenges: Revenue growth vs. external factors and costs.

Exam Strategy

• Focus on units 4.2, 4.4, and 4.5 as they are commonly tested.
• Practice calculating quantitative concepts like market share and growth.
• Utilize resources at diplomy.org for detailed explanations and practice exams.

Next Steps

• Reflect on topic familiarity.
• Visit diplomy.org for additional resources and practice.
• Reach out via email or WhatsApp for further assistance.

• Tip: Review your responses against provided mark schemes and exemplar responses.
• Contact: [email protected] for further help.