MARKETING PT1 Flashcards
what is marketing
the management process of identifying and satisfying customer needs profitably
what is marketing objectives
goals set for the marketing department to help the business achieve its overall objectives
why are marketing objectives important
-provide sense of direction
-help achieve corporate objectives
-can use as a means of measuring
-
examples of marketing objectives
increase in:
market share
total sales
customer satisfaction
returning customers
etc
other departments that marketing should coordinate with
finance: - use sales forecast of marketing for overall cash flow forecast
- ensure there is capital for promotional expenditure
Human Resources:
-ensure recruitment and selection of qualified workers
Operations:
Demand and supply (determinants and all)
you already know hopefully
what is a market
where buyers and sellers meet to engage in exchange
what is a market segment
a subgroup of a whole market in which consumers have similar characteristics
what is an industrial market
B2B selling of products by a business to other businesses
what is a consumer market
selling of products by businesses to the final end user B2C
what is consumer (market) orientation
an outward looking approach that bases product decisions on consumer demand
benefits on consumer orientation
-chances of newly-developed products failing is reduced
-longer product lifestyle an
-continuous market research
what is Product orientation
and inward-looking approach that focuses on making products that can be made or have been made for a long time and trying to sell them
what is market size
the total value(quantity) of sales of all producers within a market in a given time period
what is market growth
percentage change in the total size of a market (volume or value) over a time perido
factors affecting market growth
-rate of economic growth
-changes in consumer incomes
-technological changes
-market saturation
Implications of increased market growth
-sales increase if business market share remains the same
-sales increase lead to cost saving
-more businesses may be attracted to the market
implications of decrease in market growth
-sales increase more slowly if market share stays the same
-competitors might reduce prices to increase sales
-businesses might consider expanding into other faster growing markets
what is a brand leader
brand with the highest market share
what is market share
sales of business in time period/ total market sales in time period
x 100
implications of market share increase
-sales rising faster compared to competitors(higher profits)
-retailers will be keen to sell and stock best selling brands
-consumers keen on buying most popular brands
implications of decrease in market share
-sales likely to fall unless rapid market growth occurs
-retailers less keen to stock and promote product
-larger discount to retailers may have to be offered
what are consumer products
goods and services sold to end users
what are consumer product classified into?
-convenience products- often impulse buying(sweets)
-shopping products- not frequent, requires beforehand planning
-specialty products- expensive infrequent
what are undustrial products
goods or services sold to businesses
what are industrial products classified into
-materials and components: for production
-capital items: equiment machinery
-services and utilities
difference between industrial and consumer markets
-industrial buyers are more informed
-industrial buyers rarely buy on impulse
