Marketing(10) Flashcards
What sections does the Marketing Department consist of?
- Sales
- Market research
- Promotion
- Distribution
What is the role of marketing in a business?
- Identifying customer needs
- Satisfying customer needs
- Maintaining customer loyalty
- Anticipating changes in customer needs
- Gain info on customers
What does market share mean?
Market share is the percentage of total market sales made by one business
What are some of the objectives of the marketing department
- increase market share/sales revenue
- target/enter new markets
- raise awareness
- develop new products
Why do consumer spending patterns change?
- Tastes/fashions change
- New technology
- Change in disposable income
- Ageing populations
Why have markets become more competitive?
- Globalization
- E-commerce
- Improved transport methods
How can businesses respond to competition?
- Maintain customer loyalty
- Release new products
- Improving existing products
- Keep lower prices than competitors
What is a mass market?
A market where there is a very large number of sales of a product, e.g. soap, cars, etc.
Advantages & Disadvantages of a mass market?
+Loads of revenue -Lots of competition
+Economies of scale -Lots of costly advertising
+Risk is spread -standardized products
+Lots of opportunities for growth
What are niche markets?
Small, specialized segments of larger markets. Usually expensive, offer personalized services.
Advantages/Disadvantages of niche markets?
+Small firms can be successful
+Focus on the needs of consumers, non-standardized
-Small, so limited sales
-Often specialize in only one product, and if it falls out of favor, the business could fail.
What is a market segment?
A market segment is an identifiable sub-group of a whole market which consists of consumers who have similar preferences/characteristics, e.g. children’s soap
