4.1 Intro to marketing

Question 1

what is marketing

Answer 1

marketing is the management process of identifying, and satisfying customer requirements in a profitable way.
determining what goods and services required to meet the needs and wants of customers. –> product, price, promotion, distribution

Question 2

how to measure size of market :

Answer 2

potential number of customers, sales volume, sales revenue, the number of competitors in the market.

Question 3

What is market oreintation

Answer 3

approach to marketing that focuses and prioritize on meeting the demands of customers. Businesses focus on making products that they can sell rather than selling products they can make. –> uses r and d ( research and development)

Question 4

What are the advantages of market orientation?

Answer 4

1. new product launch is more likely to be successful because its based on market research
2. it helps to reduce the financial risks of product development by focusing on the changing needs and wants of customers.
3. Can predict or anticipate market changes and trends
4. markt research findings allow business to know latest market info, so firms can respond quicker to changes.

Question 5

What are the disadvantages of market orientation?

Answer 5

1. market research and gathering data/info can be expensive
2. market research data is easily accasible to rival firms, so any competitive advantage can disappear.
3. limitations to market research like bias, small sample size, and out dated info

Question 6

What is product orientation

Answer 6

focuses and prioritize making products a business knows how to make well rather than focusing on need and wants of consumers. These businesses often are highly innovative and tech savvy - apple, google, tesla

Question 7

Advantages of product orientation

Answer 7

• by being innovative, they can have a competitive advantage or unique selling point
• by being innovative, they can gain a positive corporate image and customer loyalty

-by focusing on R and D rathr than market research, its harder for competitors to copy products.

Question 8

Disadvatages of product orientation

Answer 8

• requires highly skilled and costly staff to develop new products
• risk to ignore the changing demands of the market.
• even though R and D is expensive, theres no guarantee that the customers would like the product.

Question 9

What is market share

Answer 9

Market share is a measure of the size of a business in comparison to others in the same industry by calculating its proportion of the total value of sales revenue in the industry.

market share % = firms sales / total sales in the market x 100

Question 9

What is market growth

Answer 9

market growth is the increase in the size of a market. Market growth attracts more manufacturing firms.

market growth = ( market size in p2 - market size in p1 ) / market size in p1 x 100

Question 10

What is a market leader

Answer 10

The firm with the largest market share is called market leader.This indicates that the firm is effective of their marketing campaigns and strategies.

Question 11

What are the advantages of market leadership

Answer 11

• can shape the industry whilst competitors follows the trend
• attracts retailers, investors, and higher quality employees.
• Brand loyalty, customers are prepared to pay high prices.
• economies of scale, so unit cost of production is lower.
• creates barrier to entry = less competitive.