1. Conflict between objectives can arise
 Within the marketing department
 E.g. a price cut can make it difficult to increase
expenditure
 With the objectives of the other departments
or functions…

2. Potential Conflict
With Accounting and Finance
 Aims to control costs – market research and promotion is very
expensive and impossible to accurately measure the return
With HRM
 Marketing aims to create demand which leads to greater staffing
requirements, HRM prefer stability whereas the marketing
department aims to stimulate change
With Production (Operations Mngt)
 Working together is essential – the marketing dept cannot
promise goods/services the production dept cannot deliver
whereas the productions dept cannot create products/services
there is no demand for (market research co-ordinated by the
Marketing Function Led
marketing dept solves this problem) Production Function Led
Product Orientation
Customer Orientation
The firm produces a product and then
The firm considers what the public
tries to convince the public they
want before trying to produce it
want/need it

3. Analysing Approach
 The pros and cons for each of the
approaches to the business
Product Orientation
Customer Orientation
The firm produces a product and then
The firm considers what the public
tries to convince the public they
want before trying to produce it
want/need it

4. Market Segmentation

5. Market Segmentation and the reasons for
Breaking down a large market into subgroups or sections that are likely to
respond to products in different ways
 Market research identifies different groups (segments) of people
within the market
 These groups can then be targeted individually increasing the
effectiveness of the firms marketing (e.g. promotional campaigns,
product versions)
 Increasing effectiveness means reducing cost and maximising
return
 Gaps in the market can be found
 Niche markets can be found (a smaller market within the whole
[mass] market made up of a specific segment of the market)
 Enhances the development of marketing strategies (plan to
achieve marketing objectives)

6. Ways to segment the market
Where people live. People from different areas of the country
Geographical respond differently to products.
Interests and hobbies and how these impact of the products
Lifestyle they demand.
Firms often product numerous versions of the products which
Age appeal to different age ranges.
Products aimed at both genders can be specifically tailored
Gender through packaging or styling.
Occupations. However incomes and products purchased are
Social Class not always in direct relation.
A (upper class: doctors, lawyers) – E (unemployed: pensioners,
on benefits).
Type of housing they live in. ACORN: A Classification of
Residence Residential Neighbourhoods. Allows firms to target those living
in flats differently to those in large detached houses.
Spending patterns. Certain groups behave differently on
Behaviour different days.

7. Ways to segment the market
Where people live. People from different areas of the country
Geographical respond differently to products.
Interests and hobbies and how these impact of the products
Lifestyle they demand.
Firms often product numerous versions of the products which
Age appeal to different age ranges.
Products aimed at both genders can be specifically tailored
Gender through packaging or styling.
Occupations. However incomes and products purchased are
Social Class not always in direct relation.
A (upper class: doctors, lawyers) – E (unemployed: pensioners,
on benefits).
Type of housing they live in. ACORN: A Classification of
Residence Residential Neighbourhoods. Allows firms to target those living
in flats differently to those in large detached houses.
Spending patterns. Certain groups behave differently on
Behaviour different days.