4.1 introduction to marketing Flashcards
(25 cards)
market
any place, physical or virtual where buyers and sellers come together to exchange goods
- a place where buyers and sellers come together or interact
- a location
- a type of product
market as a type of product
also refer to a market as a particular type of product that is being sold
marketing
all the processes involved in identifying and satisfying customer needs
marketing mix
The decisions of a business regarding its product, price, promotion, place, people, processes and physical evidence.
elements of the marketing mix
- product
- price
- promotion
- place
- people
- processes
- phycical evidence
market as place where buyers and sellers come together
A market is any place, physical or virtual, where buyers and sellers come together to exchange goods. In addition to open air markets and physical shops, virtual marketplaces such as eBay, stock markets,
product orientation
A situation where a business prioritises research and development of high quality, specialised products, rather than prioritising market research.
inward facing
advantages and disadvantages of product orientation
- USp and quality
- monopoly of power
- lack of competition
- high risk
high costs
patent
A licence or grant that gives an inventor the exclusive right to make, use or sell a product for a specific period of time.
used for inovative products or desighns
market orientated companies
A situation where the sole focus of a business is on the needs and wants of a market segment.
advantages and disadvantages of market orientated businesses
- low risk
- repeat customers often buy
- social enterprises are to meet society need
- no USP
- market research must be right
- agility; businesses must be responsive to changing market conditions
market share
The value of a single company’s sales or revenues compared with the sales of all businesses in a market.
market share formula
product sales/ total market share x 100
number of units sold by the company/ total number of units sold in market x 100
market growth
he increase in sales revenues or sales volume in an individual market over time
often attract competitors
advantages of being a market leader for customers
- netwroks: product is more valuable the more people use it
- price: can reach economies of scale with low costs
- inovation: allows investment for research and development
disadvantages of being a market leader for customers
- tend to dominate and abuse of power in network
-no guarantee prices will be lower as they want high profits- can also raise power from low competitors - with little competition might not want to be inovative
BCG matrix
help businesses have multiple products to decide on their marketing strateges
market leadership
is the product or brand with the highest market share.
advantages of market leadership for business
accessing distribution channels:This can create a positive feedback loop where high market share leads to wide distribution and strong sales.
brand recognition- loyal customers
economies of scale
price leardership and control
cash cows
high market share and low market growth
succesful products in mature
earn high sales revenye
customer loyalty
focus on replacing products and maintaining loyalty
dogs
low market share, low growth
at the end of product life cucle
stars
high market share
high market growth
- market leaser and growing market which means high profit
- focus on attracting cutomers
question marks
low market share, hugh market growth
likley have negative cash flow
uses of bcg
- consider different strategies
can identify which produc may have the potention to earn highet revenyes
