ch 3 Flashcards
What is a Product-Orientated business?
they make products they think customers will want to buy and that will sell well
ad and dis of product and market
ad 1 saves time and money (saves cost and lunch faster)
2 if its a innovative no needs they will make them
dis
1may find a gap segment
2 competitors have a uppper hand knoe more about
What is a Market-Orientated business?
This business is one which continually identifies, reviews and analyses customer needs, they must address the marketing mix
How does Market-Orientated businesses have advantages over product orientated businesses?
it can respond move quickly to changes in the market
it will be in a stronger position to meet challenger of new competition entering the market
it will be more able to anticipate market changes
it will be more confident that the launch of a new product will be a success
What makes a business become product or market orientation?
The Nature of the product–> new technologies, customers pharmaceuticals - product-based
Policy decisions –> is the business objective market share or safety
The views of those in control –> an engineer or marketer
The nature and size of the market –> if production costs are high - market orientated to ensure you’re launching a product costumers want
The degree of competition –> highly competitive - market
What does the Market segmentation acronym AGARISE stand for?
Age
Gender
Area
Religion
Income
Socio-economic groups
Ethnicity
Life-style
Life stage e.g. newly-weds
psychographic –> ethical financial product (attitudes, opinions and lifestyle
Behavioral –>loyalty , time and data consumption helps with marketing, usage rates
market segmentation
Market segmentation is when a business splits a market in different sections of consumers, each with a similar set of needs.
4 types of market segmentation:
Geographic Segmentation(Grouping customers together based on where they live.)
Demographic Segmentation(Grouping customers based on their age, gender, income, social class, ethnicity or religion.)
Psychographic Segmentation(Grouping customers based on their attitudes, opinions and lifestyles.)
Behavioural Segmentation(Grouping customers based on their behavior towards a product, i.e. their usage rate and loyalty towards the product.)
What is Competitive Advantage:
Competitive Advantage means to gain something over your competitors by having a unique feature which makes your product superior to theirs.
Ways businesses can get competitive advantages:
Product design.
Product quality.
Promotion.
Customer service.
Delivery times.
Ethical stance.
Flexibility.
economies of scale
focusing on a market segment
What is Market positioning?
the perceptions consumer have about products e.g. quickly status and value for money
What affect your perceptions((views) of a product?
the benefits offered by a product
the unique selling point (proposition)
The chariterisctics of the product ( M&M’s melt in your mouth not your hands)
The origin of the product
The classification of the product (jaffa Cake/Biscuit, I can’t believe its not butter)
What is a Market Map?
perceptual map or positioning map
typically a two dimension diagram that shows two of the attributes or characteristics of a brand and those of a rival brands in the market
why aren’t maps usefull
-is only 2D and require lots of primary research (expensive)
product
sell the product customers want–> meet the customer needs(needs a USP)
