4.1 The role of marketing Flashcards
Market
a place or process whereby customers and suppliers trade
market exists where there is demand for a particular product and where there is a demand for a particular product + willingness from businesses to supply these products
Commercial marketing
use of marketing strategies to meet the needs and wants of customers in a profitable way
ethic pay a small role
Market concentration
measures the degree of competition that exists within a market by calculating the market share of the largest few firms in the industry
Market leadership
firms with the largest market share in a particular business
Market orientation
focus on making products that they can sell, rather than selling products they can make
focuses on customers to identify
+ greater flexibility - respond quickly to changes in the market, as they have access to relevant data
+ lower risk - greater understanding of customer’s expectations
- market research is expensive
Market share
measures the value of a firm’s sales revenues as a % of the total sales revenue in the industry
Market size
magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period
Marketing
management process of predicting, identifying and meeting the needs and wants of customers in a profitable manner
Marketing objectives
specific marketing goals of an organisation
for-profit - increased sales revenue
Product orientation
marketing approach used by businesses that are inward looking as they focus on selling products that they can make, rather than making products they can sell
+ generally supply products that they specialise in
- needs of market are ignored
Differences in marketing goods and services
Intangibility - physical
Inseparability - services consumed at the time of purpose
