CH17 - Marketing Flashcards
What is Marketing?
The activity of promoting and selling products and services, including the use of market research and advertising
What would marketing include?
- Data research
- Questionnaires for consumers (social media)
- Advertising
- Product design
- Pricing
- Market research
- Distribution
- Packaging
- Customer service
What are Markets?
A market is a group of customers interested in a product
What is a potential market?
A possible group of people who may be interested in a product/service
What is the importance of marketing?
As it links the business to the customer. It aims to identify the wants and need of the customers and satisfy it effectively.
What are Marketing objectives?
The goals set for the marketing department to help the business achieve its overall (corporate) objectives
What makes marketing objectives efficient?
Should link to corporate objectives of the business which are determined by senior management. Should be SMART and be clearly communicated
What is a Marketing Strategy?
A plan of action giving details of how a business intends to achieve its marketing objectives by creating competitive advantages
Examples of marketing objectives
- Gain bigger market share
- increase value/volume of sales
etc
What dose the coordination of marketing with other departments do ? (Finance)
The finance department will use the sales forecasts from marketing can be use to help construct cash flow forecasts and operational budgets
Also ensure there is capital available to pay for the marketing budget and promotional expenditure
What dose the coordination of marketing with other departments do ? (HR)
Sales forecast will be used to prepare the necessary workforce
Also ensure HR recruits enough people qualified and experienced enough to produce and sell the products the marketing department is planning
What dose the coordination of marketing with other departments do ? (Operations)
Market research plays a key part in developing of new products
Operations will use sale forecasts to make sure they have the machinery & capacity and raw materials to manufacture their products
What is demand in business ?
The measure of desire to purchase and own a good or service
What happens in a free market ?
Market priced products should be profitable for the business who make the product
And the equilibrium price is determined when demand is equal to supply
How to reach Equilibrium pricing in a free market ?
When demand is equal to supply
Demand = Supply
What is a Free market ?
A free market economy is one without government intervention or regulation. In a purely free market, buyers and sellers decided the prices only based upon supply and demand
What is demand in Equilibrium price ?
The quantity of a product that consumers are willing and able to buy
What is supply in Equilibrium price ?
The quantity of a product that a business is willing to supply at a given price over a period of time period
What are some factors effecting demand ?
Change in :
Price
Population (decrease and increase)
Population structure
Changes in industry and customer purchase
Promotional spending and influence
Fashion and taste
Consumer income
What are Determinates of Demand ?
The factors that can affect demand
What can happen to the value of supply ?
Supply rises/falls due to demand and price change.
Varies with price , business are willing to supply more product if the price rises and will supply less if the price falls
Factors affecting supply
Cost of producing the product
Government subsidies
Taxes imposed upon suppliers (by gov)
Weather conditions
Advancements in technology to make cost of production lower
Price
What are the Determinates of supply ?
Factors affecting Supply
What are Government subsides ?
A benefit given to an individual or business
What is The Equilibrium ?
When the demand and supply are combined then Equilibrium price is determined
Point where demand = supply
What happens if prices are lower than equilibrium ?
The stock will likely run out, leaving an excess demand. Suppliers could make a higher profit by raising the profit to equilibrium pricing
What is the equilibrium ? (NOTES)
- Demand and supply are combined = the price is determined (demand = supply)
- No excess is supplied or too little
- Prices lower than equilibrium leave excess in demand as supply runs short
Suppliers can make a higher profit by raising price to equilibrium
What are markets ?
Markets are the total interested population who are interested in the product and its potential market.
What is a target market ?
Target market is a section of a market out of the whole available market a business directs their products/services towards.
What are market segments ?
Market segments are a portion of a market containing consumers with similar interests or buying habits.
What is an industrial market?
The Industrial market deals with business buying products, such as specialist equipment.
What is a consumer market ?
The consumer market deals with the products that a final product user would buy, for example a laptop.
CH17 - Markets :)
From Local, National and International markets
