marketing Flashcards
Marketing
is the management process responsible for identifying, anticipating and satisfying consumer needs profitably
4 departments in marketing department
-sales
-promotion
-distribution
-market research
sales department
responsible for the sales of the product
promotion department
deals with advertising for products
distribution department
transport the product to the market
market research department
responsible for finding out costumer’s needs
role of marketing
-gain information
-satisfying costumer needs
-maintain costumer loyalty
-identify costumer needs
marketing goals
-increase sales revenue and profit
-raise awareness of their product
-enter new markets at home or abroad
why costumer spending pattern may change
-changes in technology
-change in income
-ageing population
change in technology
new technology will be available and the old will be outdated
change in income
the higher the income,the more expensive goods consumer will buy
ageing population
in some countries, the proprtion of older people is increasing and so they demnd for products for seniors
globalization
products are being sold in markets all over the world, so there are lots of competitors
improvement in transportation infrastructure
better transportation means it is easier to sell and distribute products
internet/E-commerce
costumer can buy products over the internet from anywhere
how can business respond to changing spending pattern and increased competetion?
-keep improving existing products
-keep cost low
-introduce new products
keep improving existing product
so that sales is maintained
keep cost low
the firm can afford to charge low prices
introduce new products
to make costumers come back and drive them away from the competitors
market
a place where buyers and sellers exchange goods and service
market can be measured by?
total number of sales
markets can either be?
niche or mass
mass market
is where there is very large number of sales
advantage of mass market
sales are very large
average cost will be low compared to niche
more chance for the business to grow
disadvantage of mass
high levels of competition
high cost of advertising
cant charge higher price than competition since they are selling same products
niche market
identifying and exploiting a small segment of a larger market
advantage niche
sell products at high price
focus on one costumer group
can thrive in niche market
disadvantage of niche
lack of economies scale
likely to attract competetion
over dependance on a single product
market segment
a sub group of a larger market which have similar charcterisic and preferences
market segmentation
dividing a group of potential costumer based on their characteristic
ways in which business segment market
-age
-gender
-location
-lifestyle
benefits of segmenting the market
-sales increase
-better targeted at each segment
-possible to charge higher price
