9

The Target Market

Back in Business · Strand 2: Understanding Enterprise

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Outcomes

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9.1
Appreciate the importance of market research in identifying the target market and discuss how businesses conduct market research
Appreciate / Discuss
APPRECIATE / DISCUSS The specification defines appreciate as: recognise the meaning, value, or importance of something. Discuss means: offer a considered, balanced review supported by appropriate evidence. A good approach for discuss questions on market research is to name the type, explain what it involves for the specific business in the question, and say why it is useful to them.
Target market and why it matters
Target Market
The specific group of customers a business is trying to sell to, usually defined by common characteristics such as age, gender, income, location, lifestyle, habits, and interests.

Identifying a clear target market enables a business to tailor its products and marketing strategies to reach the people most likely to buy.
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Why Identify the Target Market?
  1. Suitable brand development — name, logo, colours and packaging can be designed to appeal directly to ideal customers.
  2. More precise product design — features match the specific needs of the target group.
  3. More effective marketing — right message, right platform, right audience — saving time and money.
  4. Higher customer satisfaction and loyalty — customers feel understood and keep coming back.
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Market research
What is Market Research?
The process of collecting and analysing information about the target market to establish trends. It can be primary (field research gathered directly by the business) or secondary (desk research using existing data from other sources).
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Why Carry Out Market Research?
  1. Establishes the size and growth of the market.
  2. Helps analyse competitors — their products, market share, strengths and weaknesses.
  3. Used to create the most suitable marketing mix.
  4. Gauges consumer reaction and reduces the risk of product failure.
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Primary / Field Research
Collecting new, first-hand information directly from a source.

Methods: Surveys, observation, customer feedback, focus groups.

Advantage: Up-to-date, specific, tailored to the business's exact needs.
Disadvantage: Can be expensive and time-consuming to gather and analyse.
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Secondary / Desk Research
Using existing data and sources that have already been gathered by others.

Examples: Internet searches, CSO reports, government publications, trade journals, media reports.

Advantage: Faster and cheaper than primary research.
Disadvantage: May be outdated or not specific to the business's exact needs.
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9.2
Outline the elements of the marketing mix and explain their significance for a business and how they are influenced by the target market
Outline / Explain
OUTLINE / EXPLAIN The specification defines outline as: give the main points; restrict to essential points of information. Explain means: give a detailed account including reasons or causes. For each P, a good approach is to name it, say what it involves, and then explain specifically how the target market influences it.
The 7 Ps
1. Product / Service
The function, features, design, quality, branding and USP of what the business offers.

Target market influence:
  1. Design and features are built to match customer needs.
  2. Branding reflects the values and lifestyle of the target group.
E.g. Nobó created dairy-free ice cream specifically for health-conscious consumers and those with dietary restrictions.
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2. Price
The pricing strategy chosen and the factors that influence it, such as competitors, brand image, and income levels of the target market.

Target market influence:
  1. Income level affects the acceptable price range for that group.
  2. Competitor pricing shapes the strategy chosen.
E.g. a teenage clothing range in Penneys uses low prices to attract value-conscious students.
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3. Promotion
How the business communicates with its target market — advertising, social media, influencers, sales promotions, public relations, personal selling, direct marketing.

Target market influence:
  1. Channels chosen based on where the target market actually spends time.
  2. Messages tailored to the interests and values of that group.
E.g. if the target is young adults, Instagram or TikTok ads rather than print media.
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4. People
Everyone involved in delivering the product or service, especially those who interact with customers — staff, salespeople, social media managers.

Target market influence:
  1. Staff image and tone should reflect customer expectations.
  2. Staff knowledge should match what the target customer needs to know.
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5. Packaging / Physical Evidence
The design, look and wrapping of the product. For services, this includes the physical environment — e.g. décor in a restaurant or hotel.

Target market influence:
  1. Visual style tailored to suit the target group's preferences.
  2. Sustainability in packaging appeals to eco-conscious buyers.
E.g. Mooju used bold, youthful packaging to appeal to 16–24-year-old males.
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6. Process
The steps a customer follows from first interaction through to completing their purchase — ordering, payment, delivery, returns, after-sales.

Target market influence:
  1. Speed valued by convenience-focused customers.
  2. Simplicity needed for customers who are less familiar with technology or online shopping.
E.g. McDonald's added order kiosks because their target market values speed.
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7. Place
How a product or service reaches the customer — distribution channels, sales platforms, physical and digital locations.

Target market influence:
  1. Younger customers prefer fast, digital channels.
  2. Older or less tech-savvy customers may prefer physical stores.
E.g. Nike sells through retailers, Nike.com, and social media channels simultaneously.
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Pricing strategies
Pricing Strategies
  1. Premium pricing — high price to signal quality and exclusivity. E.g. Apple iPhones.
  2. Penetration pricing — low price initially to attract customers and build market share, then raising prices once established.
  3. Dynamic pricing — prices change in real time based on demand, season, or customer behaviour. E.g. flights and hotel rooms.
  4. Loss leader — sell certain products below cost to attract customers who will then buy other items.
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Promotion Strategies
  1. Advertising — paid communication through TV, radio, print, outdoor, or digital platforms.
  2. Social media / influencer marketing — organic content or paid partnerships on Instagram, TikTok, YouTube.
  3. Sales promotions — discounts, buy-one-get-one, competitions, loyalty programmes.
  4. Public relations (PR) — press releases, sponsorships, events, and media coverage to manage brand image.
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9.3
Develop a marketing mix for a product and a service of choice and provide a USP analysis for each
Develop
DEVELOP The specification defines this as: to evolve; to make apparent or expand in detail. A good approach is to build out all relevant elements of the marketing mix specifically for the product or service in the question — not just list the 7 Ps in the abstract, but apply each one to that specific business or product.
USP and how to use it
What is a USP?
A Unique Selling Point (USP) is the one feature or quality that clearly sets a product or service apart from competitors. It becomes the central message of the marketing mix and communicates the product's value to the target market.
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USP Analysis
A USP analysis identifies:
  1. What makes the product unique.
  2. Why that uniqueness matters to the target market.
  3. How the business can use it consistently across the marketing mix.
E.g. All Real Nutrition's USP is high-protein, Irish-made bars with clean, simple ingredients — appealing to health-conscious consumers who read labels.
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Applying the USP to the Mix
Once the USP is identified, every element of the marketing mix should reinforce it. If the USP is sustainability, packaging should use eco-friendly materials, promotion should highlight green credentials, and pricing should reflect the premium quality being offered.
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9.4
Evaluate and suggest ways of improving an existing marketing mix
Evaluate / Suggest
EVALUATE / SUGGEST The specification defines evaluate as: collect and examine evidence to make judgements and appraisals. Suggest means: propose a possible solution. A good approach for improvement questions is to identify what is weak or could be stronger, then propose a specific change and explain why it would help.
How to approach improving each element
Improving Product
Add new features, introduce a new variant (e.g. a new flavour or size), update the design, or improve quality. E.g. a protein bar brand could add a vegan range to capture health-conscious consumers avoiding dairy.
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Improving Price
Reassess the pricing strategy based on competitor analysis or target market feedback. Introduce loyalty discounts, bundle deals, or adjust for different markets. E.g. add a premium range for international markets with higher disposable income.
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Improving Promotion
Shift to platforms the target market actually uses, or partner with influencers who reach that audience. Improve messaging to better reflect the USP. E.g. if the current strategy uses print but the target is 18–25 year-olds, move budget to TikTok and Instagram.
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Improving Packaging
Update visual design to better reflect brand values or target market tastes. Switch to sustainable materials to appeal to eco-conscious buyers. E.g. EverGlow Organics could switch to biodegradable jars with clearer sustainability messaging for European markets.
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Improving Place
Add new distribution channels — launch an online store, partner with a major retailer, or use a delivery app. E.g. a local food brand could partner with Deliveroo or list on Amazon to reach customers outside its region.
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Improving Process
Simplify the purchase journey, improve the returns process, or add self-service options. E.g. a clothing brand could add a one-click reorder option and pre-printed return labels to reduce friction and improve the customer experience.
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9.5
Demonstrate an understanding of the disruptive impact and influence of digital technology on market research and marketing
Demonstrate
DEMONSTRATE The specification defines this as: prove or make clear by reasoning or evidence, illustrating with examples or practical application. A good approach is to make a point about how technology has changed something, back it up with a specific example, and make the impact clear.
Impact on market research
Real-time Feedback
Digital platforms enable businesses to collect continuous, real-time feedback from customers — something that was not possible with traditional research methods. Online surveys, polls, and social media listening tools let businesses see what customers think instantly.

E.g. a business could monitor Instagram comments after a product launch and adjust features or pricing within days based on public response.
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Data Analytics
Tools like Google Analytics track what pages customers visit, what they click, and how long they stay — giving businesses detailed, measurable data. A/B testing allows businesses to trial two different versions of a page or ad to find which performs better.

This allows faster and more evidence-based decisions than traditional research.
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Lower Cost Research
Digital research tools are far cheaper than traditional methods like focus groups or postal surveys. Small businesses can now access customer insights that previously required large research budgets, making data-driven decisions more accessible.
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Impact on marketing
Targeted Advertising
Platforms like Instagram Ads and Google Ads allow businesses to target campaigns at specific customer groups by age, location, interests, and online behaviour — making promotion more precise and reducing wasted spend.

E.g. a sportswear brand could run TikTok ads aimed at 18–25-year-olds interested in running within 10km of their store.
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Measurable Campaigns
Digital marketing tracks views, clicks, and purchases in real time, so businesses know exactly which ads are working and which are not. This allows quick adjustments to budgets and messaging — something not possible with traditional media like TV or print.
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Low-cost Creative Marketing
Influencer videos, viral social content, and user-generated content allow businesses to market creatively and personally at a fraction of the cost of traditional advertising.

A small Irish business can reach thousands of potential customers through a well-targeted TikTok or Instagram campaign.
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9.6
Evaluate the influence of ethics and sustainability on marketing
Evaluate
EVALUATE The specification defines this as: collect and examine evidence to make judgements and appraisals; identify limitations; make judgements about ideas, solutions, or methods. A good approach for this verb is to present both opportunities and challenges, and then offer a reasoned conclusion that weighs them up.
Opportunities
Builds Trust and Loyalty
Ethical and sustainable marketing practices build trust with consumers. Customers are more likely to remain loyal to brands that reflect their values.

E.g. Patagonia's “Don't Buy This Jacket” campaign promoted repair over replacement, strengthening loyalty among environmentally conscious consumers.
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Strong Marketing Stories
Ethics and sustainability give businesses compelling stories to tell. A clear ethical purpose or social mission creates content that resonates with consumers and can stand out in crowded markets.

E.g. FairTrade branding tells a story of fair pay for farmers, appealing to buyers who value ethics in purchasing.
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Competitive Advantage
Businesses that genuinely embed sustainability into their marketing can attract eco-conscious buyers who may be willing to pay more — turning ethics into a commercial advantage rather than just a cost.
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Challenges
Higher Costs
Sustainable materials, ethical sourcing, and fair-trade practices are often more expensive than conventional alternatives. These higher costs can reduce profit margins or force the business to raise prices, which may make the product less competitive.
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Risk of Greenwashing
Greenwashing is when a business exaggerates or falsely claims sustainability credentials in its marketing. If exposed, this can cause severe reputational damage and customer backlash.

Consumers and regulators are increasingly alert to misleading green claims.
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9.7
Use a power-interest grid to analyse customer interest and adjust the marketing mix as necessary
Use
USE The specification defines this as: apply the tool correctly. A good approach is to place customer groups in the correct quadrant, explain why they belong there, and then suggest appropriate marketing mix adjustments for each group based on their position.
The four quadrants
High Power, High Interest
Who they are: Loyal core customers — they buy regularly, give feedback, and can influence others.

Strategy: Manage closely
  1. Offer loyalty rewards and early access to new products.
  2. Provide personalised service and communication.
E.g. for a protein bar brand, these are regular gym-goers buying weekly.
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High Power, Low Interest
Who they are: Influencers, trendsetters, bloggers, health professionals — they can shape opinion but don't buy consistently.

Strategy: Keep satisfied
  1. Send samples and involve them in product launches.
  2. Use them for PR campaigns and endorsements.
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Low Power, High Interest
Who they are: Niche fans, early adopters, students — engaged and enthusiastic but with limited purchasing power or influence.

Strategy: Keep informed
  1. Use social media updates and feedback polls.
  2. Run targeted promotions like giveaways or flavour votes.
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Low Power, Low Interest
Who they are: Casual consumers — occasional buyers with no strong loyalty or influence.

Strategy: Monitor
  1. Light advertising and brand awareness campaigns.
  2. Offer entry-level products to attract them.
Not the main focus of the marketing budget.
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9.8
Conduct a STEEPLE analysis to develop greater understanding of the external environment and identify issues of concern for a business
Conduct
CONDUCT The specification defines this as: perform an activity. A good approach for a STEEPLE analysis question is to name each factor relevant to the scenario, explain what it involves for that specific business, and identify the issue or opportunity it presents.
The seven factors
S — Social
Changes in lifestyle, values, demographics, and consumer attitudes.

E.g. a fast-food chain like Supermac's must adapt its menu as more young consumers seek plant-based or healthier options. Failing to respond could mean losing relevance with younger, health-conscious customers.
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T — Technological
New innovations, automation, digital platforms, AI, and how people interact with technology.

E.g. a retailer without a mobile-friendly website or online ordering system could lose sales to competitors like ASOS or Amazon, especially among Gen Z consumers who expect seamless digital experiences.
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E — Economic
Trends in inflation, interest rates, employment levels, and consumer confidence.

E.g. during high inflation, a chocolate brand like Cadbury may face higher production costs, forcing it to raise prices or reduce portion sizes (shrinkflation), which could lead to customer frustration.
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E — Environmental
Climate change, resource use, packaging waste, and energy efficiency expectations.

E.g. a bottled water brand may face criticism if it does not switch to recyclable packaging, as consumers increasingly expect more sustainable options.
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P — Political
Government policy, taxation, international trade agreements, and political stability.

E.g. tariffs introduced on EU goods would reduce the competitiveness of Irish exports to affected markets, increasing costs for Irish businesses selling internationally.
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L — Legal
Changes in laws and regulations — employment rights, consumer protection, advertising rules, data privacy (GDPR).

E.g. a business collecting customer emails for marketing must comply with GDPR or risk fines and reputational damage.
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E — Ethical
Moral standards expected by society around how a business treats workers, suppliers, animals, and the environment.

E.g. a fashion brand may face backlash if its clothes are made in unsafe working conditions — consumers are more likely to support brands that are transparent and ethical in how they operate.
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Tap the card to flip. Tap again to flip back. ✓ if you know it, ✗ to see it again.
Choose a learning outcome to quiz yourself on, or quiz all 8 at once.
Chapter 9 appeared across all four sample papers at both levels. LOs 9.1, 9.2, 9.4, 9.6 and 9.8 were examined. LOs 9.3, 9.5 and 9.7 did not appear in the sample papers — a practice question and suggested approach is included for each.
9.1 Discuss two types of market research before expanding OL Paper 1 · Q1(d)
Question asked
Discuss two types of market research EverGlow Organics Ltd may use before expanding their business.

Context: EverGlow Organics is an Irish organic skincare company planning to expand into Europe and Asia. They need direct feedback from consumers and existing data on market trends.
Suggested solution
The following is a suggested approach based on the specification verb and the scenario. It is offered as a study aid, not as a definitive answer.
Primary (field) research: EverGlow could conduct surveys or focus groups with potential customers in target markets to gather first-hand opinions on their products. This would give specific, up-to-date data tailored to their exact expansion goals — for example, testing which skincare products appeal most to consumers in Germany or Japan.
Secondary (desk) research: EverGlow could analyse existing government reports, trade publications, and industry statistics on the organic skincare market in Europe and Asia. This gives broad insights about market size, trends, and competitors without the time and cost of gathering new data.
9.2 Explain two promotion strategies used by businesses OL Paper 1 · Q4(e)
Question asked
Explain two promotion strategies used by businesses.
Suggested solution
Social media marketing: Businesses use platforms like Instagram, TikTok, and YouTube to promote products to targeted audiences. It allows businesses to create engaging content, run paid ads aimed at specific customer groups, and interact directly with customers. E.g. Gym+Coffee used Instagram to build brand awareness and attract a younger consumer base across Ireland and internationally.
Sales promotions: Short-term incentives such as discounts, buy-one-get-one offers, competitions, or loyalty reward schemes encourage customers to purchase. These create a sense of urgency and can attract new customers or reward existing ones. E.g. a supermarket running a “3 for 2” offer on selected products to drive footfall and increase basket size.
9.2 How the target market influences the promotion element OL Paper 2 · Q2(g)(ii)
Question asked
Outline two ways the target market for a product or service might influence the promotion element of the marketing mix.
Suggested solution
Choice of platform: The target market determines which channels the business uses to advertise. If the target market is young adults, the business would use TikTok and Instagram rather than print newspapers, as younger consumers spend more time on digital platforms.
Tone and messaging: The language, images, and style of promotional content must appeal to the target market's values and interests. A product targeting health-conscious consumers would use clean, natural imagery and focus on health benefits, while a product targeting teenagers might use humour and trending cultural references.
9.4 Adjust packaging and price when expanding internationally OL Paper 1 · Q1(b)
Question asked
Describe how EverGlow Organics Ltd may need to adjust its packaging (physical evidence) and price when expanding into international markets.
Suggested solution
Packaging: EverGlow may need to adjust packaging design, materials, and messaging to appeal to customers in different countries. In environmentally conscious European markets, they could switch to biodegradable jars with clear sustainability messaging on the label. This aligns with local consumer values and differentiates EverGlow from less eco-friendly competitors.
Price: Pricing strategies must reflect differences in disposable income, price sensitivity, and perceived value in each target market. In high-income urban areas, EverGlow could adopt premium pricing to reflect the quality of their organic skincare. In more price-sensitive markets, a lower entry price at launch could attract new customers and build brand loyalty before moving prices higher.
9.6 Evaluate the influence of ethics and sustainability on marketing HL Papers 1 & 2
Question asked
Evaluate the influence of ethics and sustainability on a business's marketing strategy.

Appeared in HL Paper 1 Q5(b) and HL Paper 2 Q1(c) in different contexts.
Suggested solution
The specification verb “evaluate” involves examining evidence and reaching a judgement. A good approach is to present opportunities and challenges, then offer a reasoned conclusion.
Opportunity — Builds trust and competitive advantage: Businesses that genuinely embed ethical and sustainable practices into their marketing can build stronger trust with consumers. Brands like Patagonia have turned sustainability into a central marketing message that attracts loyal, values-driven customers willing to pay more.
Opportunity — Strong marketing stories: Ethics and sustainability provide compelling content. A clear social mission — such as FairTrade coffee's story of fair pay for farmers — gives the business an emotional narrative that resonates with consumers and differentiates it from competitors with no such story.
Challenge — Higher costs: Sustainable materials and ethical sourcing are often more expensive than conventional alternatives. These costs can reduce profit margins or force price increases, making the product less competitive against cheaper rivals.
Challenge — Risk of greenwashing: Businesses that exaggerate or falsely claim sustainability credentials face serious reputational damage when exposed. With consumers and regulators increasingly alert to misleading green claims, this is a genuine risk for businesses that do not back their messaging with real action.
Conclusion: On balance, ethics and sustainability appear to offer significant opportunities for businesses that embed them genuinely. The risks are real but manageable — the key is ensuring that marketing claims are supported by actual practice.
9.8 Match the STEEPLE elements to the factors given OL Paper 2 · Q3(a)(ii)
Question asked
Write the name of the STEEPLE element beside the factor that best matches it.

Factors included: Lifestyle changes/income distribution/fashion/trends; Carbon footprint/threats from natural events/waste disposal; Changes in IT and internet capability; Inflation rates/exchange rates/consumer confidence; Client confidentiality/fairness/equality; Consumer and employee legislation.
Suggested solution
Lifestyle changes / income distribution / fashion / trends — Social
Carbon footprint / threats from natural events / waste disposal — Environmental
Changes in IT and internet capability and range / new inventions — Technological
Inflation rates / exchange rates / consumer confidence and spending power — Economic
Client confidentiality / corporate values / fairness / equality / wellbeing — Ethical
Consumer and employee legislation / corporate governance — Legal
9.3 Develop a marketing mix and USP analysis Practice Question
Practice question
Develop a marketing mix for All Real Nutrition protein bars and provide a USP analysis for the product.
Suggested approach
USP: High-protein, Irish-made bars with simple, clean ingredients — appealing to health-conscious consumers who check labels and value local provenance.
Product: A range of protein bars in multiple flavours with clear nutritional information. Irish origin and clean ingredients are central to the product identity.
Price: Premium pricing to reflect quality and natural ingredients, positioned above mass-market bars but below luxury protein supplements.
Promotion: Social media campaigns on Instagram and TikTok using fitness influencers, alongside sponsorship of Irish running events and gym partnerships to reach the core target market directly.
Packaging: Natural, earthy colours to signal clean ingredients and reflect the Irish origin. Packaging uses clear nutritional labelling because the target market reads labels carefully.
Place: Sold in gyms, health food shops, and online. The online store allows international customers to purchase, extending the reach beyond Ireland.
9.5 Digital technology's impact on market research and marketing Practice Question
Practice question
Explain two ways digital technology has changed how businesses (i) conduct market research and (ii) promote their products.
Suggested approach
Market research: Digital technology enables businesses to collect continuous, real-time feedback through online surveys, social media polls, and listening tools. This allows them to see what customers think instantly and adjust decisions quickly. Previously, this required expensive and time-consuming focus groups or postal surveys.
Marketing: Platforms like Instagram Ads and Google Ads allow businesses to run highly targeted campaigns aimed at specific customer groups by age, location, and interests — making promotion far more precise and cost-effective than traditional media.
9.7 Use a power-interest grid to analyse customer groups Practice Question
Practice question
A clothing brand identifies four customer groups: Group A — casual shoppers who browse occasionally; Group B — major retail partners who buy in bulk; Group C — loyal young customers who buy regularly and give feedback; Group D — fashion influencers with large online followings.

Place each group in the correct quadrant of the power-interest grid. Identify the priority group and suggest two marketing mix changes to target them.
Suggested approach
Grid placement: Group A — Low Power, Low Interest. Group B — High Power, Low Interest. Group C — High Power, High Interest. Group D — High Power, Low Interest.
Priority group: Group C — loyal young customers. As the High Power, High Interest group, they drive repeat revenue, provide valuable feedback, and can influence their peers.
Marketing mix adjustments: (1) Promotion — create a loyalty rewards programme and offer early access to new collections via a dedicated email list. (2) Price — introduce an exclusive members' discount for repeat customers to reinforce loyalty and increase purchase frequency.
📌 Know all 7 Ps by name — and what each one involves
You must be able to name all seven from memory: Product, Price, Promotion, People, Packaging/Physical Evidence, Process, and Place. Questions have asked students to fill in the remaining five Ps from a diagram — a straightforward question if you know them. Note that Packaging is sometimes called Physical Evidence in the sample papers — both are acceptable.
📌 Applying “discuss” to market research questions
The specification says “discuss” means to offer a considered, balanced review supported by appropriate evidence. A good approach for market research questions is to name the type (primary or secondary), explain what it involves specifically for the business in the question, and say why it is useful to them. A general definition without applying it to the scenario is a weaker answer.
📌 Applying “evaluate” to ethics and sustainability
The specification says “evaluate” involves examining evidence and making judgements. A good approach for ethics and sustainability questions is to present both opportunities (e.g. builds trust, creates competitive advantage) and challenges (e.g. higher costs, greenwashing risk), and then offer a reasoned conclusion that weighs them up. A one-sided answer — only benefits or only challenges — is incomplete for this verb.
📌 STEEPLE — know what belongs under Ethical vs Legal
The two factors students most commonly mix up are Ethical and Legal. Ethical refers to the moral standards society expects from a business — fairness, transparency, responsible behaviour. Legal refers to actual laws and regulations a business must follow — GDPR, employment law, consumer protection. Keeping this distinction clear is important for matching questions.
📌 Power-interest grid — place the groups first, then suggest changes
When using the power-interest grid, always place each customer group in the correct quadrant before suggesting marketing mix adjustments. The High Power, High Interest group is the priority for the business's main marketing effort and should receive the most personalised and rewarding treatment.
📌 For “suggest ways to improve” questions — be specific
The specification says “suggest” means to propose a possible solution. A good approach for improvement questions is to name the specific P being improved, describe the change clearly, and explain why that change would benefit the business or better serve the target market. A vague suggestion like “improve the packaging” is weaker than “switch to biodegradable materials to appeal to eco-conscious European consumers.”

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