igcse business section 3 Flashcards
Marketing
identifying customer wants and satisfying them profitably
customer
a person, business or other organisation which buys goods or services from a business
the sales team
responsible for sales of product, may have an export team
the market research section
responsible for finding out customers needs
the promotion section
organises the advertising, and decide a marketing budget
distribution section
transports products
the role of marketing
-identify customers needs
-satisfy customers needs
-anticipate changes in customers needs
-maintain customer loyalty
-build relationship to gain info abt customers
customer loyalty
when existing customers continually buy products from the same business
customer relationships
communicating with customers to encourage them to become loyal to the business and its products
market share
percentage of total market held by one brand or business
a successful marketing department should be able to
-maintain or improve business image
-develop new products or existing products
-increase revenue and profitability
-increase or maintain market share
-target a new market or market segment
-enter new markets at home or abroad
-raise customer awareness
consumers
buys goods or services for personal use not to re-sell
why customers’ spending patterns change
-change in tastes and fashions
-change in technology
-change in income
-ageing populations
why some markets became competitive
-globalisation
-internet/ e-commerce
-transportations improvements
how can businesses respond to change in spending patterns
-maintain good customer relationship
-keep improving existing products
-bring out new products to keep customers’ interests
-keep costs low to maintain competitiveness
mass market
a very large number of sales of a product
adv of mass market
-high total sales
-economies of scales
-opportunities of growth
-risks can be spread
disadv of mass market
-high level of competition
-high costs of advertising
-standarised products may not meet specific needs of customers
niche market
small usually specialised segment of a much larger market
adv of niche market
-high levels of customer loyalty and good customer relations
-reduces competitions
disadv of niche market
-relatively small so limited sales
-if product is no longer in demand, business will fail
market segment
an identifiable sub- grp of a whole market in which customers have similar characteristics or preferences
adv of market segmentation
-cost effective by making a product which will meet wants
-higher sales and profits
-offers opportunities to increase sales
ways of segmenting a market
-age
-region/ location
-gender
-lifestyle
-use of product
-socio-economic group