Chapter 10 Marketing, competition and the customer Flashcards
What is marketing
Identifying customer wants and satisfying them profitably
Who is a customer
a person, business, or other organization which buys goods or services from a business.
The teams that make up the marketing department
Sales
Distribution
Promotions
Research
SD PR
Role of sales team
Responsible for the sales of the product(s).
Role of Research team
Find out what customers want/their preferences,
Find out what their competition, the rest of the market is doing. (market share, product features, etc)
Role of the Promotions team
Promote the product using advertisements that would make the product attractive to customers/raise awareness
Role of the distribution team
Responsible for distributing the product - how, what, and where to distribute the product.
What is the role of marketing
Identifying the customers’ wants
Satisfying customer wants
Maintaining customer loyalty
Increase market share/image of the business
Build customer relationships
Anticipating changes in customer needs
MISMRA
What is costumer loyalty
When existing customers continually buy products from the same business
What are customer relationships
Communicating with customers to encourage them to become loyal to the business and its products.
Its much cheaper to keep a customer rather than getting a new one.
What is market share
Percentage of total market sales held by one brand/business.
Successful marketing could lead to
Increased awareness
Increased/maintained market share
Increase in profit and revenue
Improve/maintain the image of the brand
Why costumers may shift from one product to another
Changes in technology
Ageing population
Changes in income
Changes in preft/taste
What is a market
Consists of customers who demand a particular product and sellers who sell those products.
What is mass marketing
Product has a large number of sales and is sold to the general population
Advantages of mass marketing
High sales
Risks can be diffused since the business sells serval variations of products, so if one product slows down/fails the business won’t be heavily impacted
Disadvantages of mass marketing
High costs of advertising
Standardized products may not meet all the needs of the customer which could lead to loss of sales (could drive customers to competitors)
What is niche marketing
Products sold to very small number of customers who form a small segment of a large market.
Advantages of niche marketing
Needs of customers are more closely focused on and met.
Better customer loyalty and customer relationships
less competition
Disadvantages of nice marketing
Relatively small - limited sales
Less room for growth and profitability
Product risk - usually business in a niche market specialize in one product, if that product is no longer demanded then the entire business is at risk.
Need more market research
What is a market segment (like what the segment is itself)
Identifiable sub-group of a whole market in which consumer have similar characteristics or preferences.
What is market segmentation
The process of dividing a market into market segments.
Ways to segment a market
Income
Age
Gender
Interests/preferences
Region/location
How can segmenting a market help the business
Makes marketing more cost effective. Only advertising to your target audience/market segment
Leads to higher sales and profits because of the cost-effective marketing
