P1 - Know the role of marketing in organisations
British Sky Broadcasting Group (Public limited Company)
The ‘BskyB’ which is commonly known to and referred to as ‘Sky’ is a British based satellite broadcasting, broadband and telephone services company.
Cadbury Enterprises pte Ltd (private limited)
Cadbury Enterprises pte Ltd, commonly known as ‘Cadbury’ is a British confectionery company, which is best known for their confectionary products such as ‘Dairy Milk’ chocolate, ‘Crème Eggs’ and the ‘Roses’ chocolate selection box.
Market penetration is the popularity of a product from a particular brand or category which is sold to customers from a particular market. Market penetration happens when a business/company ‘penetrates’ a market where current or similar products already exist, in an attempt to gain competitors’ customers. Sky offer bonuses or extras to the products they advertise to try and gain more customers in that area, for example:
In attempt to convince you to purchase a Sky Movies subscription, Sky offers its customers free cinema tickets each week. Cadbury offer prizes to be won by customers who purchase their products, and opening the wrapping. For example:
People who purchase Cadbury chocolate which has this offer on the wrapping will be given a code to enter onto their website, which gives them a chance to win prizes. This is to get more customers to purchase their products. Market development
Market development consists of trying to expand a market by gaining new users, or gaining new uses for that market. New users can be found from:
Geographic segments – Information about the physical location of the customer, or other data source. Companies that sell products/services would like to know where their products are being purchased so that they can increase advertisement in that location. Demographic Segments – Demographic segmentation is based on different demographic factors (age, gender, education level, marital status, occupation, religion etc.) of different groups of product/services consumers. It is used to specify a place that may need custom promotions & advertisement. Psychographic Segments – Market development of psychographic segments consists of analysing product consumer lifestyles in order to create a customer profile.
Using a festive holiday, in this case Christmas, Cadburys can design and creative new products with that festive theme, such as the Santa Claus chocolate, or a snowman chocolate. Using a festive holiday like this allows a temporary increase in consumers, because the products can be used as gifts, or used as food for parties/gatherings.
Sky also uses the Christmas holidays to create a new offer for consumers, in this case offering half price to a Sky Movies subscription for 6 months, whilst mentioning one of the channels exclusive to Sky Movies, ‘Sky Movies Disney’. Diversification (Marketing)
Diversification is a type of strategy that businesses use to widen their access of different products and markets. The business will look into gaining experience and knowledge outside its existing markets, in order for them to explore a new avenue of business.
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