4.1 Introduction to Marketing Flashcards
what is a market
- a place, physical or virtual, where buyers and sellers come to exchange goods
business to consumer marketing
a business selling products to customers
marketing mix
decisions of a business regarding its product, price, promotion, place, people, processes and physical evidence
product
the good or service which satisfies a need or want in a market
element of marketing mix
price
amount of money a business charges for a product or service
element of marketing mix
promotion
advertising, sponsorships, sales promotion, or other tactics to inform and persuade customers to buy a product
element of marketing mix
place
physical distribution of the product
element of marketing mix
people
those involved in offering a service
element of marketing mix
processes
acitivities needed in the interaction between the customer and the business
element of marketing mix
physical evidence
sensory elements that the customer sees, smells, hears and touches when interacting with a business
element of marketing mix
marketing
range of ideas in which a business can adapt strategy to meet the needs and expectations of consumers and sell their products
product orientation
prioritising research and development of high quality, specialised products, rather than prioritising market research
patent
licence/ grany that gives an inventor exclusive right to make, use or sell a product for a specific period of time
market leader
product/ brand with highest market share
disadvantages of market orientation
high risk
high costs
no guarantee that customers will want to buy the final product
ergo, money invested in the product is lost
advantages to market orientation
USP and quality (distinguishes itself from competitors)
monopoly power (patents enable the business to be the sole producer for a period of time (ergo, large revenues and profits))
lack of competition (totally new products = little or no competition)
market orientation
sole focus of the business is on the needs and wants of a market segment
unique selling point (USP)
feature of a product that distinguishes it from its competitors
what is a type of organisation more likely to be market oriented
social enterprise (as it meets human needs)
advantages of market orientation
low risk
repeat customers
social enterprises (want to be market oriented to solve human problems and meet human needs)
disadvantages of market orientation
no USP (not distinguished from competitors; greater competition)
market research must be right
agility (must be responsive to changing market conditions)
market share
value os a single company’s sales or revenues compared with the sales of all businesses in a market
market growth
increase in sales revenues or sales volume in an individual market over time
formula for market share (sales)
(product sales/ total market sales) * 100