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HBM Marketing Assessment

Example Answer
Question 1
Coca-Cola manufactures products for different sections of the market eg
Diet Coke, Original and Cherry
a) Identify 2 ways in which an organisation may segment its market – 2
marks
b) What are the advantages of using market segmentation – 6 marks

Two methods of segmenting a market are by age and gender. Others include
education level, socio-economic group, location of customer and religion.

The advantages of market segmentation include the fact that organisations can
identify any potential gaps in the market and then fill those gaps with
profitable products/services. During promotional campaigns, organisations can
target selected customers who are most likely to purchase their products. If an
organisation specialises in a niche segment it is less likely to suffer competition
from larger rival organisations. In addition segmenting the market enables
organisations to carry out targeted market research in order to better meet
customer needs in its products/services. Customers in different segments of a
market have different needs and therefore segmentation can enable a different
marketing mix to be exploited eg different pricing structures or different methods
of promotion.

Question 2
Describe and justify the promotional techniques, which might be used by
major high street retailers to make customers aware of their products – 7
marks

Different promotional techniques, which could be used by a major high street


retailer, include advertising. This could include advertisements taken out in major
newspapers or magazines, posters promoting the launch of a new product eg bus
stops and billboards or TV/Radio advertising. Using promotional techniques such as
this will increase customer awareness by informing them of the new launch.

Supermarkets may offer free samples, in order to tempt customers into buying a
specific product, or magazines may offer trial versions of products on their covers.
This may in the future stimulate increased interest in the product.

Sales promotions may be used which include 3 for the price of 2 or Buy one get
one free. Discounts could also be on offer for a limited time. This may persuade
customers to change their loyalty from another branded product.

Some retailers offer special out-of-hours previews of sales, this not only rewards
loyalty to customers, but permits increased trading activity as these customers may
not otherwise re-visited the store in a short timeframe. As a consequence this may
increase sales.
Question 3
Describe the methods available to a Public Relations department to
improve the image of an organisation. – 5 marks

If an organisation has encountered bad publicity the Public Relations department


may issue a press release to counteract this. The Press release may be send to
newspapers and other media outlets while also found within the investor relations
section of their corporate website.

Organisations can often be seen to be “profit-making” above all other objectives.


Giving donations to local charities including local school events can be seen to
improve their image within the local area. This could be further developed with
sponsorship of local event eg a catering company could provide free
refreshments.

If a celebrity is seen to be associated with a product (and has a good image


themselves) this is transferred onto the product in question. This is known as
Celebrity Endorsement.

Company merchandise “free gifts” might be issued at trade fairs eg free USB
Drives or Pens. Both these items will have the company logo on them and provide a
continual reminder to their user of the company. Examples of this related to Knox
Academy include Standard Life issuing ‘Standard Life” pens when they provide the
Human Resources training sessions.

In addition to press releases, it may be necessary to hold a press conference.


Press conferences allow two-way communication between the organisation and the
media. An example of this is often seen in films where the media can question the
President after an announcement has been made.

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