marketing, competition and the customer Flashcards
define marketing
identifying customer wants and satisfying them profitably
define a customer
a person, business or other organisation which buys goods or services from a business
the marketing department consist of 4 different teams. What are they and what do they do?
sales team: in charge of product, plan strategies to see products
market research: finds customers needs and impact of competitors ‘action
promotion team: organising and advertising
distribution channel: transport product to market
there are 5 roles of marketing, what are they?
identify customer needs satisfy customer needs maintain customer loyalty gain information about customers anticipate changes in customer needs
what is the meaning of customer loyalty
when existing customer continually buy products from the same business
what is customer relationship
communicating with customers to encourage them to become loyal to the business and its products
name 7 possible objectives of marketing department
raise customer awareness of produce/ service of business
increase revenue and profitably
increase or maintain market share
target new market or market segments
enter new market at home or abroad
develop new products or improve image of products
what is market share
percentage of total market sales held by one brand or business
what is a consumer
buys goods or serve for personal use - not to resell
what are the 4 reasons customer spending patterns change?
changes in technology: older products don’t sell well
consumers taste and fashion change
changes in income: if economy has low employment, then population will buy cheap things
ageing population: anti aging products are in demand
why is it important for business to understand market changes
if they fail to respond to customer need, they would most likely fail
what are the 3 reasons some market become more competitive
globalisation of market: products are sold all over the world
transportation improvement is easier and cheaper
internet/e-commerce: people can buy and search in overseas market
how can a business respond to changing spending patterns and increased competition
maintain good customer relationship
keep improving its exiting products to help with competition
bring out new products to keep customers’ interest
keep cost low to maintain competitiveness
what is a market and how do you measure it
total number of customers, potential customers, sellers for a particular good or service
measure total number or by value of sales
what is mass marketing
where there is a very large number of sales of products
they have to appeal to whole market to attract the most customers
what are the advantages mass marketing
total sales are high
economies of scale
risk are spread as business sell different variations
opportunity of growth due to large potential sales
what is niche marketing
small usually specialised segments of a much larger market
what are the advantages of niche marketing
high level of customer loyalty and good customer rs as needs of customers can be closely focus on
small business may be able to sell successfully cuz larger business may not hv identified them and focus on mass marketing
large business have less competition
what are the disadvantages of mass marketing
high level of competitions
high cost of advertising and promotions
may not reach specific needs as it is standardised –> loss of consumers
what are the disadvantages of niche market
limited sales potential due to small size , can only be profitable in niche markets and would need to develop new products for mass market to grow
risky is products become out of demand
what is market segments
identifiable subgroup of a whole market in which customers have similar characteristics or preferences
what are the ways segmenting business can help
make marketing cost effective by producing a product which closely meets needs of customers
enjoy higher sales and profits for business due to cost effective marketing
identifying market segments which is not having its need fully met and offers opportunities to increase sale
what are a few ways of segmenting a market
social economic groups like income, age, location, gender, use of product and lifestyle
benefits of segmentation to a business
sell more products - make diff brand that appeal to diff segments
increase sales- can identify segment who’s needs are not being met
