4.1 Introduction to Marketing Flashcards
What is Marketing?
“Getting the right product, to the right customers, at the right price, at the right time.”
- Basically, it exists to address people’s needs and wants, and, to be fair and honest, to convince them to want what they don’t need.
Why is marketing a continuous process?
as businesses grow and evolve, their marketing will change.
as the business operates in changes, so will its marketing
based on the success of a business and its competitors, its marketing also needs to respond
HR Marketing
Marketing data can help identify staffing needs as well as to hire specialized staff.
Conflict= Minimal
Operations Management
Market research informs sales forecasts and to inform about and launch new products.
Conflict= Production managers like slower launches to further test and develop, marketers want a faster launch to maximize revenue, delays also hurt image
Finance & Accounts
Set appropriate budgets
Conflict= Marketers like to go over budget to maximise exposure, marketers prefer lower prices, and promoting credit/payment plans, which affects Cash Flow
Product orientation
Inward looking-focused on making the product first and then trying to sell it
Product led-assuming that supply creates it own demand. Businesses create innovative products and consumers buy them.
Market Orientation
Outward looking-focused on market research first and then making the products
Market led and focused on establishing consumer needs so that demand meets supply
Advantages of Product Orientation
Associated with high quality products
Can succeed in industries where the speed of change is slow and the firm already has a good reputation
Has control over its activities, strong leadership with a clear vision.
Disadvantages of Product Orientation
risk of ignoring the market = failure
spending money R&D without considering needs can be costly
Benefits of Market Orientation
Increased confidence that their product will be successful due to market research
Access to market information so firms can respond more quickly to changes in the market.
Strong position to meet competition
Disadvantages of Market Orientation
market research is costly and can impact firm’s budget
consumer tastes can change frequently so research may become rapidly out of ate, firms may have difficulty meeting all consumers needs
uncertainty about the future-makes planning difficult
10 point questions for Unit 4
(A03)s
- Increased sales, revenues and profits
- Able to gain economies of scale (decrease in Average Cost of marketing as output increases).
- Can be a brand leader with your brand being a promotional tool
*IB likes to ask this question and it can also be used to give a ‘Big Picture’ response. *
drawbacks to being a Market Leader
- many competitors can copy you
- differ from their competitors
Market Share Formula
Company’s sales revenue
/market’s sales revenue
x 100
or
company’s total sales
/market’s total sales
(don’t forget %)
Market Growth
measures the rate at which the market size as a whole is growing over a given period of time.
Example: If the market growth rate is 2% higher this year, the market itself is 2% bigger than the previous year.
Market Growth
this year’s market sales - last year’s markets sales
/last year’s markets sales
x 100
Market share can be calculated in different ways
By value (previous example) and volume, different results therefore could be obtained for the same time period.
Changes in the time period and market can influence market share.
The types of products included may also influence the calculation of market share.
