4.1 - Introduction to Marketing Flashcards
Marketing definition
the process of identifying, anticipating and satisfying consumers wants and needs profitably
why is marketing important?
there may be many changes over time
* consumers needs/wants may change over time
* business plans and objectives may change over time
* competitors may enter the market
what is a market
any place where buyers and sellers come together and exchange information as well as sell goods and services
what are the usual objectives of marketing
- increasing reveue
- increasing market share
- increasing brand awareness
what is market orientation
when a business produces products based on the market and what consumers are demanding
- outward looking marketing strategy
what is product orientation
when a business creates products, not based on the demands of the consumers rather on the goals and visions of the business
- inward looking marketing strategy
pros of market orientation
- higher chance that new products will be successful
- can build customer loyalty through customer satisfaction
- can react more rapidly to changes in the market - can change to consumer preferences (constant market research)
product orientation pro
- likely to have a unique selling point
- can likely charge higher prices because of usp
- market research is not always reliable
- people dont always KNOW what they want
what is market share
shows the size of the business relative to the sizeof the market
* shows how much of the market is controlled by one business
* calculated using sales revenue
what is the calculation for market share
what is market growth
how fast the a market is growing over a period of time
market growth calculation
what is market leadership
the product or business with the highest market share within a specific market
pros of market leadership
- better positions within stores/retailers (can lead to more sales)
- higher profits/revenue
- higher brand recognition
- economies of scale
- control over pricing
