The Role of Marketing

Exam code: 7115

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Marketing helps a business identify and satisfy the needs and wants of its customers
- Identifying customer needs involves finding out about the
  - Variety and quality of goods and services that customers want
  - Prices they are willing to pay
  - Promotional techniques that may persuade them to make repeated purchases
  - Convenience factors, including where and how they want to purchase products
  - After-sales services they anticipate
- Satisfying these customer needs involves ensuring products are available when and where customers want to buy them, at a suitable price, at the quality expected and with effective customer service

Businesses that successfully identify and satisfy customer needs
- Compete more effectively than rival businesses
- Keep up-to-date with changing tastes and preferences
- Attract positive word-of-mouth recommendations and build the brand

Customer need	Explanation	Benefit to the business
Price	This is the amount of money a customer is willing to pay for a product or service Customers often have a budget and want good value	By satisfying customers with fair, competitive pricing, the business can attract more buyers and increase sales This also helps build trust with price-sensitive customers
Quality	Quality refers to the standard customers expect from a product or service This includes reliability and after-sales service	Meeting quality expectations increases customer satisfaction and encourages repeat purchases This leads to loyalty and positive word-of-mouth promotion
Choice	Customers have different tastes and expect a variety of products or services to suit their needs This may include different sizes, styles or features	Satisfying this need by offering variety makes it more likely that customers will find something they want This increases sales and improves brand reputation
Convenience	Customers want easy access to products and services This may include delivery options, payment methods and online ordering	Providing convenience helps build loyalty, improves the customer experience It can lead to more frequent and higher-value purchases

Customer loyalty is when existing customers buy products from the same business over and over again
- Customer loyalty leads to repeat purchases and a rise in market share.
- It is much cheaper for a business to try to keep existing customers (for example, with loyalty cards) than to try to gain new customers, as this can involve expensive advertising campaigns

Building customer relationships involves communicating with customers to encourage them to become loyal to the business and its products
- Good relationships are maintained by
  - Developing close ties with customers and finding out if products are continuing to meet their needs
    - For example, using surveys to discover if preferences are changing
  - Using technology to gather important information about customers

By having strong relationships with the customer, the business can respond appropriately when customers change their expectations

Predicting what customers will want or need in the future helps a business stay ahead of competitors and continue meeting customer expectations

Market research
- Surveys, focus groups and sales data help businesses understand what customers want now and in the future
  - For example, McDonalds uses customer feedback and sales data to test new menu items like the McPlant burger, designed for the growing demand for plant-based food
Product development
- Teams use this research to improve or create products that meet changing needs
  - For example, Apple developed AirPods after noticing customer demand for wireless and portable earphones, especially among smartphone users who wanted more convenience
Promotions
- These can be adjusted to demonstrate how products match new customer values or interests
  - For example, Coca-Cola launched its World Without Waste campaign and promoted its recycled plastic bottles to appeal to environmentally conscious consumers
Pricing strategies
- These may change if customers become more price-conscious
  - For example, Netflix introduced a lower-cost plan in some countries to attract budget-conscious viewers during a time when many households were cutting back on spending

Identifying and satisfying customer needs