Marketing Flashcards
What is marketing?
Marketing is the art of determining the goods and services required to meet the needs and wants of customers in a sustainable way.
Extra: As most businesses aim to earn a profit, most marketing activities are concerned with anticipating, identifying, and satisfying the needs and wants of the market, in a profitable manner.
What are needs?
Needs are the things people need in order to survive. They are necessities rather than human desires.
Name some examples of needs:
Food
Water
Shelter
Clothing
Warmth, and
Sleep
What are wants?
Wants are human desires, i.e. things people would like to have, or have more of.
The marketing function of an organization strives to provide the market with…
the right products that appeal to customers
at the right prices in order to attract customers
effective promotion to entice customers, and
convenient and efficient distribution for ease of purchase
What are the 4 P’s of marketing?
Price, Promotion, Product, Place
Define Market Size
The size of a market can be defined as the total number of individual customers or
The total value of sales revenue in a certain market.
What are the most common methods of measuring the size of a market?
1) The potential number of customers in a market for a particular good or service.
2) Sales volume, i.e. the quantity products sold to customers.
3) Sales value (or sales revenue), i.e. the amount spent by customers on the product sold by firms in the market.
What is market growth?
The percentage change in the total size of a market (volume or value) over a period of time.
/ Total revenue or quantity the firm generates / Total revenue or quantity the whole industry generates.
What is market share?
The percentage of sales in the total market sold by one business.
What can market share indicate in terms of other companies?
This can give an indication of the degree of intensity of competition. The greater the barriers of entry into the market, the fewer the number of rivals will exist in the market.
What are the 2 types of markets?
Consumer and Industrial Markets.
Define the consumer market
Markets for goods and services bought by the final user of them.
Define the industrial market
Markets for goods and services bought by businesses to be used in the production process of other products (goods and services).
What are the two alternative approaches to an organization’s marketing strategies?
Market orientation and product orientation
Define Market Orientation
Market orientation is an approach to marketing that focuses on meeting the specific demands (desires and needs) of customers and potential customers.
In business orientation do businesses focus on making products that they can sell or selling products that they can make?
businesses focus on making products that they can sell, they prioritise the needs of their customers above everything else.
What are some advantages of Market Orientation?
New product launches are more likely to be successful as they are based on market research, so are more likely to be accepted by the target market.
It helps to reduce the financial risks involved in product development by focusing on the changing needs and wants of customers and potential customers.
Being able to predict or anticipate market changes and trends will help businesses to be in a stronger position to handle the threats of new entrants in the market and to respond to changes in the needs and wants of people.
Market research findings enable businesses to access the latest market information, so firms can respond quicker to changes in the market and/or enable firms to anticipate market changes.
What are some disadvantages of Market orientation?
Gathering meaningful and representative market research information and data can be very expensive for the organization, so have an negative impact on it finances.
Market research data, especially secondary sources, is often easily accessible to rival firms, so any competitive advantage and attractive profit margin can quickly disappear.
There are limitations to how the market research could have been carried out, such as researcher bias, unrepresentative results from using an inappropriate sample size, and/or using outdated information.
