BTEC Tech Award



Activity sheet 3.6: Direct marketingLearning aim A1: Elements of the promotional mix and their purposeDirect marketing is when a business communicates directly with its customers to establish and build a relationship. Methods of direct marketing include: Direct mail (junk mail) – which comes through your letterboxMail order catalogues – which come through your letterboxMagazines – that come through your letterbox, or which you can pick up free in some placesTelemarketing – where a company phones you to tell you about its latest products.Your class will now be divided into four groups to complete the following tasks.Research. Your group will be given one type of direct marketing for you to research. Your group should collect, or make notes about, examples. Your teacher will tell you when you need to bring any samples or notes to class.My group’s method of direct marketing is: Lesson presentation. Prepare a presentation of your direct marketing method. Show examples of your type of direct marketing, or provide evidence from notes you have made. Your presentation should also include the following information:The types of business that use this methodThe types of product that are marketed using this methodThe advantages of this methodThe disadvantages of this methodCollating findings. Complete the table below by collating evidence from each group in your class. Examples of each methodBusiness that uses this methodProducts marketedAdvantages of methodDisadvantages of methodDirect mail examples include:Mail order catalogue examples include:Magazine examples include:Telemarketing examples include:Activity sheet 3.7: Types of marketLearning aim A2: Targeting and segmenting the marketThere are two main types of market:B2B – a business-to-business market in which one company sells products to another.B2C – a business-to-consumer market in which companies sell products directly to consumers.When targeting a B2C market, a business will be aware that consumers’ decisions are based on the following factors. Explain how a business can ensure that it addresses each factor:(a) Emotional response(b) Value for money(c) Features and benefits(d) Brand identityExplain how operating in a B2B market is different from a B2C market.Activity sheet 3.8: Market segmentation 1Learning aim A2: Targeting and segmenting the marketRead the information below about five different people/families:Charlotte and LeeNot married but have been together for two years and have the same interests and lifestyles. Lee is a fire-fighter; Charlotte is a fitness instructor. They are both in their mid-twenties. They enjoy energetic leisure pursuits and the exciting nightlife in their home city of Newcastle. Roy and DoreenMarried for 38 years with three children, all of whom have left home. They are both retired and enjoy a variety of day and evening classes at the local college when they are not visiting family.HarveySingle. He is a successful businessman working for a large stockbroker in London. He has a busy life and a wide group of friends. When he is not making money, he enjoys spending it!Michael and RachelMarried with two children. Both are teachers and have a keen interest in classical music. Rachel works full-time; Michael is a supply teacher and looks after Naomi, their youngest child, who is two. They are considering having a third child.Victoria and AliNewly-weds. Victoria has just graduated from university; Ali is a qualified nurse. They are both in their early twenties and have ambitions to travel. They often go camping.Match these four products to the relevant people from the table above:Product 1: HolidayWho would this holiday suit?Two weeks white-water rafting down the Grand CanyonA long weekend in ParisTen-day coach holiday to ScotlandTwo weeks in the Caribbean All-inclusive package holiday to RhodesProduct 2: TransportWho would this transport suit?Estate carPeople carrierTwo-seater sports carBicycleFour-door saloon carProduct 3: Leisure timeWho would this activity suit?Playing bingoA night in with pizza and a DVDUsing the gymTrip to a stately homeMeeting friends at an exclusive wine barProduct 4: HomeWho would this home suit?Owns a three-bedroom semi-detached houseOwns an open plan flatOwns a bungalowRents a two-bedroom end of terrace houseOwns a two-bedroom detached houseExtension activity: Write three points that outline why markets are divided (segmented).Activity sheet 3.9: Market segmentation 2Learning aim A2: Targeting and segmenting the marketMarkets can be divided into different segments – for example, demographic, geographic, psychographic and behavioural. These segments group together similar types of people.State three types of demographic segmentation:(a) ___________________________________________________________________________(b) ___________________________________________________________________________(c) ___________________________________________________________________________Try to explain what psychographic segmentation is and give one example.Explanation: Example: Research a local business to find out if it targets different market segments. Examples of a local business might include:Café/restaurantHotelClothes retailerHairdresserDoes the business you are researching have different products for different types of customer?Does it target different segments in its promotion materials? To do your research, you could use the internet and promotion materials. You could also interview the owner/manager.Extension activity: Based on your completed research, write an article for a magazine about how much the business targets different market segments. You can use the back of this sheet to plan and write your piece. Activity sheet 3.10: Factors influencing choice of promotional methodsLearning aim A3: Factors influencing the choice of promotional methodsList four factors that could influence the choice of promotional methods for a business:Factor 1: Factor 2: Factor 3: Factor 4: Rank each of your factors in importance for the different businesses shown below.BusinessRankingInternational sport equipment manufacturer – Adidas1. Factor ___2. Factor ___3. Factor ___4. Factor ___Local café/restaurant1. Factor ___2. Factor ___3. Factor ___4. Factor ___British retailer – Marks and Spencer1. Factor ___2. Factor ___3. Factor ___4. Factor ___Explain how budgetary constraints can influence the choice of promotional methods.Explain how the target market of a business can influence the choice of promotional methods. ................
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