The Role of Marketing (CIE IGCSE Business)

• Marketing helps a business identify and satisfy the needs and wants of its customers
  • Identifying customer needs involves finding out about the
    • Variety and quality of goods and services that customers want
    • Prices they are willing to pay
    • Promotional techniques that may persuade them to make repeated purchases
    • Convenience factors, including where and how they want to purchase products
    • After-sales services they anticipate
       
  • Satisfying these customer needs involves ensuring products are available when and where customers want to buy them, at a suitable price, at the quality expected and with effective customer service

Diagram: The Benefits of Identifying Customer Needs

The ultimate aim of identifying and meeting customer needs is to ensure business survival and success

• Businesses that successfully identify and satisfy customer needs 
  • Will compete more effectively than rival businesses 
  • Will keep up to date with changing tastes and preferences
  • Will attract positive word-of-mouth recommendations and build the brand

The Benefits of Meeting Customers Needs

Need	Explanation	Benefits to the Business
Price	This is the amount of money a customer is willing to pay for a product or service   Customers often have a budget in mind and want to find the best value for their money	Understanding this helps the business set competitive prices and offer appealing promotions to their target market
Quality	Quality refers to the standard of excellence that a customer expects from a product or service   Customers want products that are reliable, durable, and meet their expectations They also want good quality after-sales service	Understanding this helps businesses create products that meet the desired standards, which can lead to customer loyalty and positive word-of-mouth advertising
Choice	Customers often have a wide range of preferences and want to be able to choose from a variety of products or services Varied features, such as sizes, colours and styles, are required by different customers	Understanding this helps businesses offer a range of product options that cater to different customer preferences This can increase customer satisfaction and loyalty, as customers are more likely to purchase a product that meets their specific needs
Convenience	Customers value convenience because they want products that are easy to access and use   This includes factors such as location, online ordering, and fast delivery   Customers may also want a variety of ways to pay for the products	Understanding this helps businesses to create a customer experience that is both efficient and enjoyable   By providing a convenient shopping experience, businesses can build customer loyalty and increase repeat sales

• Customer loyalty is when existing customers buy products from the same business over and over again

• • Customer loyalty leads to repeat purchases and a rise in market share. 
  • It is much cheaper for a business to try to keep existing customers (for example, with loyalty cards) than trying to gain new customers, as this can involve expensive advertising campaigns
     

• Building customer relationships involves communicating with customers to encourage them to become loyal to the business and its products
• Good relationships are maintained by
  • Developing close ties with customers and finding out if products/services are continuing to meet their needs 
    • E.g. Using surveys to discover if preferences are changing
  • Using technology to gather important information about customers
     

• By having strong relationships with the customer, the business can respond appropriately when customers 
  change their expectations of what they want from a good or service