Maketing, Competition, & The Customer Flashcards
Marketing
Identifying customer needs and satisfying them profitably
Roles of marketing
- identify customer needs
- satisfy customer needs
- maintain customer loyalty
- build customer relationships
- anticipate changes in customer needs
Customer loyalty
When existing customers keep buying from the same business
Customer relationships
Communicating with customers to encourage them to be loyal to business
Market share
Percentage of total market sales by one brand
Reasons of changes in spending patterns
- fashion changes
- changes in tech
- changes in incomes
- ageing populations
Why some markets be one more competitive
- Globalization
- transportation improvements
- e commerce
How to respond to changes spending patterns and competition
- maintain customer relationships
- improve existing products
- introduce new products
- keep costs low
Market
Place to facilitate exchange of goods
Mass market
Large no. Of sales
Adv of mass market
- total sales very high
- business benefit from economies of scale
- spread risk by adding varieties
Disadv of mass market
- high competition
- high costs of advertising
- may not meet specific customer needs
Niche market
Specialized segment of a large market
Adv of niche market
- less competition
- high customer satisfaction
Disadv of niche market
- limited sales
- high risks
Market segment
Identifiable sub group of a whole market
Adv of market segment
- design products that meet customer needs
- higher sales cuz cost effective marketing
- offers opportunity to increase sales if market segment found
Ways of market segmentation
- socio economic group
- age
- gender
- location
- use of product
- lifestyle
Which method of market segmentation should be used
- analysis of market and size of potential segment
- brand image
- cost of entering segment
