2. Marketing Introduction Flashcards
What is a market?
a meeting place for buyers (consumers) and sellers
the sale of goods to customers by any means (market stall, shop, telephone)
what is the role of marketing?
-to raise awareness of goods and services on offer
-raise the organisations profile in the market
-encourage customers to purchase
-target new customers and retain existing ones
what is the importance of marketing?
-organisations must make sure they are producing goods and services that people want
-if not, then they won’t survive
-if they do , the organisation will be profitable and may grow
what is market share?
a firms market share is its percentage of all the sales in the market
what is market segmentation?
this involves splitting customers into different groups (socio-economic group, age, income eg)
what is the importance of segmentation?
-organisations can better meet the needs of the customer in a specific segment
-better opportunities for growth
-profits can be increased
-customers can be retained
how can market segment assist an organisation?
-developing products that are appropriate to the customers and highlighting gaps in the market
-setting appropriate prices
-ensuring that products are sold in the appropriate places for the target customer
-ensuring that appropriate promotions are offered to the target customers
what is target marketing?
when the market is broken down into submarkets
why is target marketing important to a business?
-provides a product that meets the need/wants of the consumers
-sell its product in the right place
-sells its products at the right price for the consumers in the segment
-provides appropriate promotions to the group of consumers
what’s differentiated marketing?
providing different products and services for particular market segments
what is undifferentiated marketing?
aiming products and services at the population as a whole without producing different products for different market segments
what is undifferentiated marketing?
aiming products and services at the population as a whole without producing different products for different market segments
what is niche marketing?
companies sometimes identify a niche (gap) in a certain market
involves aiming a product at a small market segment
whites market orientation?
this approach puts customer needs at the centre of the companies decision making process
what are the advantages of market orientation?
-more likely to be what the customer wants
-more able to anticipate and meet changes in customer demands
-will be able to make changes to its products or develop new products easily as it listens to its customers
