2.2.1&2 BM Pre-learning

​Marketing & Customer Bases

By Adele Wyers

​U2 AOS 2 Business Management - Term 3 Week 3 Pre-learning

Marketing is the link between the consumer and the producer.

It includes all the activities of the business which create, communicate or deliver ideas and value to the customer.

Some marketing is planned by the business (logo, product design, ads) and some is unplanned (negative news, poor staff behaviour, word of mouth).

​

​What is marketing?

​Marketing is a total system to plan, price, promote and distribute products to present and potential customers.

The following things can be marketed:

- Goods produced by businesses
- Services provided by businesses
- Events and experiences
- People (celebrities or influences)
- Places for people to visit
- Ideas and social causes
- Organisations (businesses, schools)

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​What can be marketed?

Multiple Choice

Which of the following best defines marketing?

• The process of manufacturing goods for customer use

• The process of managing employees and finances

• The process of creating, communicating, and delivering value to customers

• The process of ordering stock from suppliers

Fill in the Blank

Marketing creates a link and relationship between the business and the _________ .

Draw

Draw yourself at the beach with FOUR things that can be marketed.

Drag and Drop

There are many things that can be marketed: '​

Placeholder

and services are one of the most common, but even the ​

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itself needs to be marketed. Other options include ​

Placeholder

for people to experience, ​

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for people to visit, or ​

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that people want to share.

Drag these tiles and drop them in the correct blank above

goods

business

events

places

ideas

consumers

advertisements

productions

Multiple Choice

An anti-smoking campaign is an example of marketing a(n):

• Product

• Experience

• Idea

• Service

Open Ended

How do you think that Elon Musk wants to market himself as a celebrity?

​This is the idea that rather than trying to sell a product, a successful business focuses on satisfying customer needs.

Key Idea: 'start with the customer, not the product.'

​​Marketing Concept

The application of the marketing concept in day to day operations. It puts the customer at the heart of everything the business does, from product development to promotion.

Market Oriented Approach

Dropdown

The ​
Select answer
​
Select answer
is a business ​
Select answer
that focuses on satisfying customer needs to achieve success, while the market-oriented ​
Select answer
is the practical ​
Select answer
of this concept in day-to-day business decisions.

This customer first philosophy has four main elements.

Considering all of these in business operations decreases the chances of a new product launch failing.

It should also lead to strong relationships with customers, creating customer satisfaction and loyalty.

​

​Marketing Concept

• Roughly 80% of a business's sales or profits often come from 20% of its customers.

• This small group of loyal, repeat customers is typically more valuable than a larger group of one-time buyers.

• It highlights the importance of retaining customers, not just attracting them
  
  
  
  

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​Customer Loyalty

Multiple Choice

According to the 80/20 rule, what should a business focus on to build a reliable customer base?

• Spending 80% of the budget on advertising

• Converting first-time buyers into repeat customers

• Increasing one-time sales through discounts

• Lowering prices for all customers

Multiple Choice

What does the Pareto Principle (80/20 rule) suggest in a business context?

• 20% of profits are reinvested into 80% of marketing

• 80% of customers are unhappy with 20% of products

• 20% of staff do 80% of the work

• 80% of sales often come from 20% of customers

The customer base refers to the consumers who regularly purchase products from a business.

Developing one helps to meet business objectives such as:

- increasing sales
- increasing market share
- expanding the business

​

​Customer Bases

Multiple Choice

What is a business objective?

• A business objective is a specific, measurable goal that a company aims to achieve.
• A business objective is a vague idea that a company hopes to achieve.

Multiple Choice

What business objective is shown in this image?

• increasing sales

• increasing market share

• expanding the business

Open Ended

This is now the end of 2.2.1 (Chapter 11.1). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far.

​The ability of a business to create a loyal customer base and meet their business objectives will depend on a number of factors and stakeholders from the internal and operating environment.

​

Factors to Consider

Multiple Choice

A stakeholder is ....

• someone who has a stake in the business

• someone who has an interest in the business and has different demands on the business

• someone who has shares in the business

• someone who owns the business

Multiple Choice

Influences that come from within the business are in the...

• macro environment

• external environment

• operating environment

• internal environment

Multiple Choice

Factors over which the business has little control over are in the...

• internal environment

• operating environment

• macro environment

• external environment

Multiple Choice

The environment that is made up of broad forces, trends and conditions in the economy and society that the business has not control over is called the...

• Macro Environment

• External Environment

• Internal Environment

• Operating Environment

Internal and external factors will also influence how well a business can develop its brand identity.

Remember! Branding is more than a logo or colours.

But that part of the branding can be protected against others using it via TRADEMARKING.



Video refresher after the question on the next slide, if needed.

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​Brand Identity

Multiple Choice

What happens after trademarks are registered?

• No one else can use that trademark for those products.

• The business makes a lot of money.

• Other businesses can still use that trademark for their products.

• The business gets new customers.

A customer-focused culture strengthens the brand and builds loyalty by aligning with customer expectations.

Poor internal culture or unethical behaviour can damage the brand and drive customers away, especially through social media backlash.

Business Culture

​Skilled owners/managers can develop effective marketing strategies that build a strong customer base.

Lack of marketing knowledge may limit brand growth, especially in smaller businesses without expert support.

​​Owners/Managers

Postive, friendly customer service encourages repeat customers and strengthens brand reputation.

Employees are the ‘face’ of the business, so their behaviour directly shapes customer perceptions of the brand.

​​Employees

Internal Business Environment Factors

Strong economic conditions create opportunities to grow the customer base, as people have more spending power.

In downturns, businesses must adapt branding to highlight value for money and retain budget-conscious customers.

Economy

Technology enables personalised products and services, helping businesses attract and retain specific customer segments.

Online platforms like Canva show how technology supports brand identity through user-friendly, customisable services.

Technology

Compliance with consumer laws helps build trust with customers and strengthens the business’s brand reputation.

Breaching regulations or receiving complaints can damage the brand and reduce customer confidence, making it harder to grow the customer base.

​​Legislation

External (Macro) Business Environment Factors

Businesses must tailor marketing strategies to different generations and customer segments to avoid alienating key groups.

Offering customised products builds stronger emotional connections with customers and increases loyalty and willingness to pay more.

Poor treatment of customers (e.g. unfair policies or breaches of trust) can attract negative media attention and drive customers to competitors.

Customers

Competitive pricing and frequent promotions are used to attract and retain customers, especially in saturated markets.

New competitors (like ALDI) can disrupt the market by offering better value or unique brand experiences, forcing established businesses to adapt.

Awards and positive customer ratings enhance a brand's image and help grow its customer base through trust and reputation.

Competitors

External (Macro) Business Environment Factors

Multiple Choice

How can competitors like ALDI influence the customer base of other supermarket chains?

• By offering competitive prices and strong brand satisfaction
  

• By selling only imported products

• By encouraging customers to shop online

• By reducing the number of available stores

Drag and Drop

Businesses must understand their ​

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and tailor their marketing to different groups, such as Gen X, Gen Y, and Gen Z.
Offering ​

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products can help create stronger connections with customers and increase loyalty.
Mistreating customers can damage a business’s ​

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and reduce its customer base.
Competitors may use lower prices and frequent promotions to ​

Placeholder

customers.
To stay competitive, businesses must constantly respond to changes in the ​

Placeholder

environment.

Drag these tiles and drop them in the correct blank above

macro

customers

personalised

reputation

operating

attract

internal

Open Ended

This is now the end of 2.2.2 (Chapter 11.2). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far.

Open Ended

You have now learnt the material and made an effort to store it effectively. The next step is to practice retrieval. Make sure that you complete Sections 1 and 2 as RECALL notes within the next 24 hours. Answer here: how do you do recall notes?

Open Ended

Please provide feedback to your teacher about how well this activity could work as a form of pre-learning. Compare it to Edrolo/dot points and identify any improvements that can be made.