A1 Principles And Purposes Of Marketing Flashcards
What is marketing
The identification,satisfying and revisiting of customer needs
Marketing covers a number of activities including:
Researching
Making decisions
Keeping up to date
Researching the market is to what…
Identify customer needs
Making decisions is about what?
The product, price, place and promotion in order to satisfy customer needs
Why is keeping up to date with changes in the market important?
It allows you to keep customers coming back and attract new customers
The principles and purposes of marketing include what?
Stimulating demand
Satisfying demand
What does Stimulating demand include?
Informing existing and potential customers about the products
Generating interest
Developing brand recognition
Satisfying demands included what?
Meeting customer needs
Developing new products
Changes to the marketing mix
What is a business aim
The overall long-term target or goal of the business
Marketing objectives are likely to what
be informed (Instructed) by research and potentially constrained by budgets
what two things are used to select the marketing strategy and develop a marketing campaign?
marketing aims and objectives
What are examples of marketing objectives?
Understanding customer wants and needs
Developing new products
Improving profitability
Increasing market share
Diversification
Increased brand awareness and loyalty
Examples of understanding customers wants and needs
with a view to satisfy them
Anticipating changing tastes and preferences
Gaining a competitive advantage
Examples of developing new products
Innovative products
Extensions to existing products
Responding to technological advancements
Examples of improving profitability
Increasing revenue whilst maintaining costs (e.g. more repeat purchases)
Charge higher prices as a result of brand loyalty
1-What is market share
2-How to calculate market share
3-Example of increasing market share
1-Market share is the proportion of total market sales that a firm has
2-Business A sales/market sales x 100
3-Wider brand recognition
Examples of diversification
Bringing out new products for new markets
Spreading risk
Building brand strength
What is brand loyalty
when customers keep returning to buy a recognised brand
What is branding
a promotional method that involves the creation of an identity for a business that distinguishes its products from competitors
Markets can be categorised by…
Consumer
(products and services bought by individuals for their own or family use)
Industrial Markets
Types of consumers
FMCG’s (Fast-moving consumer goods)
Consumer durables
Soft goods
Services
Industrial Markets
What are FMCG’s
Examples
These are high volume, low unit value, fast repurchase
ready meals, baked beans and newspapers
What do Consumer durables have
examples
These have low volume but high unit value. Consumer durables are often further divided into
White goods
Brown goods
Examples of White goods
Fridge-freezers, cookers, dishwashers, microwaves
Examples of brown goods
DVD players, games consoles, personal computers
What are soft goods
examples
Soft goods are like consumer durables, except that they wear out more quickly and therefore have a shorter replacement cycle
Clothes, shoes
Examples of services
Hairdressing, dentists and childcare
What do Industrial markets involve
Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers
Industrial markets include selling…
Selling finished goods
Selling raw materials or components
Selling services to businesses
Examples of selling finished goods
office furniture
computer systems
Examples of selling raw materials or components
steel, coal, gas , timber
Examples of selling services to businesses
Waste disposal, security. accounting and legal services
Industrial markets often require what?
a slightly different marketing strategy and mix
Examples of the types of markets
Mass markets
Niche markets
Examples of mass markets
A product is targeted at a wide range of people
The market is not segmented i.e. the characteristics of types of customers are not an important factor
Products appeal to a wide range of customers
Products are widely available through a range of markets
Mass media is used to advertise the products
Examples of Niche markets
Identifying small, currently unsatisfied, gaps in the market
The target market is well defined with distinct characteristics
Promotional activities will be target at just a small subsection of the whole market
Can often charge higher prices
Examples of both mass markets and niche markets
Market size
Market share
What is market size?
This is the total value or volume of sales in the market. It can be measured in money terms e.g. £20 million or by the amount sold e.g. 1 million cars
What is Market share?
This is the proportion of total market sales that a firm has
