Flashcards in Section 3- Marketing Deck (20):
The management task that links the business to the customer by identifying and meeting the needs of customers profitably - ut does this by getting the right product at the right price to the right place at the right time ⌚
The goals set by the marketing department 🏬 to help the business achieve its overall objectives.
For example increasing market share, total sales, number of customers or brand identity
Marketing strategy (how?)
Long-term plan established for achieving marketing objectives
An outward looking approach basing product decisions on consumer demand, as established by market research.
An inward looking approach that focuses on making products that can be made - or have been made for a long period of time - and trying to sell them
This approach considers not only the demands of consumers but also the effects on all the members of the public (society) involved in some way when firms meet these demands. E. G dolphin 🐬 safe ❤ tuna fish 🐠, caught by a rod instead of nets that trap 🐬
Demand and the 5 determinants of demand
°the quantity of a product that consumers are willing and able to buy at a given price in a time period ⌚
The level of demand for a product can vary due to a change in any of these determinants of demand:
1. 🔼In consumers' income
2. 🔼In prices of substitute goods and complementary goods
3.🔼 In population sizes and structure
4.🔼In Fashion and taste
5. Advertising and promotion
Definition of supply :
And the 5 determinants
The quantity of a product that firms are prepared to supply at a given price in a time period.
The level of supply can vary due to change in any of these determinants of supply :
1.cost of production
2.taxes imposed on the suppliers by government, which raise their costs
3. Subsidies paid by government to suppliers, which will reduce their costs
4. Weather conditions and other natural factors
5. Advances in technology to make the cost of production lower
The market price that equates supply and demand for a product. If the price were higher than this, there would be unsold stock. If the price were lower than the equilibrium the stocks will run out - leaving excess demand.
And the 3 NB reasons for it
The total level of sales of all producers within a market. Market size is important for 3 reasons :a marketing manager can assess whether a market is worth entering or not; firms can calculate their own market share ; and growth /decline can be identified.
Market growth and its formula :
The percentage change in the total size of a market (volume or value) over a period of time.
Market growth =
(🔼in total size of market /period of time) ×100
Market share :
The formula and the 3 benefits of a high market share.
The percentage of sales in the total market sold by one business.
Market share =
(Firm's sales in time period/÷
total market sales in time period). ×100
Benefits of a high market share :
1. Sales are higher than those of any competing business in the same market and this could lead to higher profits too
2. Retailers will be keen to stock and promote best selling brands
3.being the 'market leader' could be used in advertising and other promotional material
Direct competitor :
Businesses that provide the same or very similar goods or services. For example Pizza Hut and Pizza Perfect 🍕 franchises. They both sell pizza 🍕
USP - unique selling point or proposition :
The special feature of a product that differentiates it from competitors' products. It is a marketing concept /strategy that is likely to add value.
Making a product distinctive so that it stands out from competitors' products in consumers' perception. This marketing strategy adds value.
Niche marketing :
Plus an advantage and disadvantage
Identifying and exploiting a small segment a larger market by developing products to suit it.
An advantage of this is that small firms may be able to survive and thrive in markets that are dominated by larger firms. A disadvantage is small market niches don't allow economies of scale to be achieved.
Mass marketing :
Plus an advantage and a disadvantage
Selling the same products to the whole market with no attempt to target groups within. An advantage is that mass market businesses are likely to enjoy substantially lower average costs of production. A disadvantage is that their products may lack status and image.
Market segment :
A sub group of a whole market in which consumers have similar characteristics.
Market segmentation :
Plus there ways of segmenting and an advantage and disadvantage
Identifying different segments within a market and targeting different products or services for them.
3 ways of segmenting :
An advantage is that businesses can define their target 🎯 market precisely and design and produce goods specifically aimed at these groups, leading to increased sales. A disadvantage is research and development and production costs may be high as a result of different product variations.