Unit 2: Organizational Structure
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How does marketing help firms to understand and
satisfy customer needs?
Learning objectives
Why do businesses conduct market research and
what methods do they use?
What is the purpose of market segmentation?
What is the marketing mix and how are its
components used?
What are the roles of branding and sales?
What is a SWOT analysis?
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The Marketing department makes
potential and existing customers
aware of the goods or services that a
business sells.
It must ensure that the business sells
what customers need or want by:
looking at the business from the customer’s point of view
identifying customers’ needs and providing for them
working out what customers will need in the future
collaborating with the Research and Development
department to invent new goods and services.
How does the Marketing function
affect other functional areas?
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Different types of markets
A market is simply a situation where the producer (of a
business) provides a good or service to those who want it
and are usually prepared to pay for it.
Today, modern technology such as the Internet means that
even the smallest businesses can access customers around
the world. There are many different types of markets:
basic commodities – e.g. oil, gold
consumer goods – e.g. clothes, PCs
industrial goods – e.g. machinery,
services – e.g. banking, hairdressing
Identify three factors that affect the
demand for goods and services.
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Global marketing
An increasing number of firms now aim to sell on an
international, rather than a national or local, level.
Improved transportation means that
goods can be distributed around the world
quickly and cheaply. Firms can easily
communicate with foreign customers via
the Internet – e.g. responding to enquiries
and receiving orders.
They need to use market research and
adapt their marketing to take into account
different tastes, languages and cultures.
Think of three reasons why a crisps
manufacturer might have problems selling its
products in another country.
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Market research
Market research is used by businesses to identify what
customers need and want. This is done by examining the
opinions and buying behaviour of different market segments.
Primary research involves collecting and analysing original
information found specifically for a purpose. The opinions of
customers are gained directly, e.g. by surveys in person,
by post, on the phone and through observation.
Secondary research involves
analysing information from existing
material, e.g. websites, databases,
newspapers, magazines, Internet
sales and loyalty cards.
Do you think that primary or secondary
research is more useful? Why?
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Primary and secondary research
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Quantitative and qualitative research
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