Marketing, competition and the customer

AirGo is a market-orientated business. It offers flights to 10 airports throughout Asia. 90% of its customers are holidaymakers. AirGo advertises only in national newspapers. The Marketing Director is concerned that demand for AirGo’s flights may be price elastic. Last year revenue decreased because competition increased. She would like to aim at a different market segment, such as business customers. She is unsure how new legal controls designed to protect the environment could affect AirGo.

Feb/March 2016

ABA operates short-haul flights across 60 countries. It is a multinational company headquartered in country X. ABA applies market segmentation when selecting its pricing method. The marketing department is conducting market research to collect feedback on customer experience. ABA is also looking at ways it can help sustainable development.

Feb/March 2021

Mabel is planning to launch her own hairdressing business. To do this, she must develop strong customer relationships. She has already carried out some secondary market research to discover possible demand and to decide which methods of promotion to use. She has chosen to purchase her inventory (stock) from a wholesaler. Mabel is now searching for the best location for her business. She believes that location will matter more than the price charged in determining the success of her business.

May/June 2015

Having spent 20 years working in a bank, Luis has savings of $5000. He wants to launch his own business that sells and repairs mobile (cell) phones. The market is highly competitive. Luis has chosen not to buy a franchise for $4500 because he thinks it is better to run the business on his own rather than act as a franchisee. From his primary market research, he estimates he will need 15 customers each week to break even. Luis thinks that creating customer relationships will matter. He intends to use social networks to promote his new business.

May/June 2016

Identify and explain two ways in which a business plan might have helped Peter when he was setting up Value Gym.

May/June 2018

Economic growth in country X has opened up many opportunities for new businesses such as TGH. TGH produce a range of personalised mobile (cell) phone cases by using job production. Quality assurance matters to all 8 employees. TGH operate in a niche market. The Marketing Manager uses e-commerce as TGH’s channel of distribution. She is thinking about ways to strengthen customer relationships.

May/June 2021

Pamela runs a thriving enterprise. She owns a gift shop that sells celebration cards, toys and candy (sweets). When she launched the business 30 years ago, she had no one to help her run the shop. She now employs 5 staff. Pamela understands that retaining customer loyalty is important. She uses competitive pricing. Most of her marketing budget is spent on sales promotion. Pamela does not use e-commerce.

May/June 2022

NFC makes shoes by batch production. Quality assurance is used to keep quality high. NFC applies market segmentation. The Marketing Director is checking NFC’s product range. He understands that creating new products has both advantages and drawbacks. He also understands that product promotion matters.

May/June 2025