unit 2 chap 1 nature of marketing Flashcards
what is a market?
can be held anywhere
what is common in all markets?
sellers looking to sell products or services
consumers looking to buy products or services
how does a business assess a market for the demand of a product?
1) size of market
2) market niches
3) potential market growth
4) exisiting market segments
mention the external factors that affect marketing objectives
5
- tech
- customer behavior
- competitor behavior
- change in law
suppliers
how does marketing opperate within an organization?
marketing depaetment does not operate in isolation witin a firm
marketing dep obj has to align w businesses obj
such as = inc in proft + sales
inc in market share + good business image
what are the 2 things maketing objcvtives are converned with?
product and markets
marketing obj concerned w product and markets?
product
- inc sales
- create brand loyalty
- delvelop product range
market
- survival in market
- change market position
- inc market share
what are the internal factors that affect marketing obj
- forecasted sales + profit
- availaibiltiy of finance
- market research findings
explain the imp of having clear marketing obj and their requirement
marketing obj–> set out what A business wants to achieve –> from its marketing activities
- THUS OBJ HAVE TO BE
- Consistent w ocverall aims
- clearly comminicated to all deps in org
- if clear + realistic obj –> they will provuide clear sense of direction to org + marketing dep to become market leader
- if clear–> progress can be monittered
this will form basis of marketinf strategy for business
what does supply mean
the ability and willingness to sell a product or service
supply relation explain
and why
whenprice increases supply increases
- most firms want to make profit –> if a price of product high–> thus more profit made on each unit sold (assume p doesnt change)
thus other firms encouraged to make + sell that product as see opp to make profit
mention the non price factors of supply
cop
technology change
weather
govt policy
what does the term demand mean?
the abililty and willingness to buy a good or a service
the non price factors of supply lead to a ____________
shift in the supply curve
supply affected due to price leads to__________
movement along the same supply curve
what is the r/s of demand and price
AND explain why
if the prices increase
demand falls
(inverse relation)
consumers look to buy as cheaply as possible
when prices increase of a product —> ppl not able to afford (assuming disposbale income does not increase)
thus ppl look for cheaper substitute alt
mention the non price factors of demand
-income
- price of substitte goods
advertising
- change in pop structure
- tastes and trends
non price factors of demand lead to ______________
shift in the demand curve
demand affected by price lead to movement along the demand curve
true or false
true
below the equalibrium point is ______________
excess demand
what is market equalibrium?
where the demand and supply forces meet at one point
above the market equalivrium means ___________
exess supply
what are national markets?
business that opperates WITIHIN country NOT overseas
what are international markets?
business that opprrates within local boundary and targets oversees customers –> GIVES ACCESS TO MORE CUSTOMERs
how does an international market differ from a national market?
legal differences–> diff regulations
unstable govts–>civil voilence
cultural differences –> use of lang/diff products demanded/ dress code
business practices —> diff working comditions/ use of gifts toc achieve contracts
larger markets/segments
cheap labor/material
what are the 2 approaches to marketing
product oreintation
market oreitnation
explain market oreintation
focus on meetimg needs of customer
market research used to identify customer needs + perception + demand —.info allows firm to develop products catering to demand of customers
effective apraoch
in competive market –> market oreinted approach said to be used to survive + thrive in market
explain product oreintation
firm concentrates on producing products + invest high prop of resrouces on PRODUCT FEATURING rather than MARKETING
product made w/o carrying pout market research THEN business tries to find customers to buy it
(DYSON)
what are the benifits of market oreientation
1) possible for firms to use D and S to deterimine prices
2) very imp approach in fast changing markets –> allows speedy respose
3) decreases number of market failures ‘
4) reduces wastage as unwanted products not produced
5) market reserach feedback allows business to tailor production + marketimg to needs of customers before compettitos
product oreinted refers to __________ ________ approach
inward looking marketing
what are the 3 things marketing strategy should consider?
target market
the marketing mix
strenghts of the business
what is a NICHE market
smallest portion of the larger market
cator the specifi c wants and needs of customers
what is marketing stretegy for?
it is desgned to achieve marketing obj
what is a mass market
selling into the largest part of the market
where many similar products + servives
maj needs of customer similar
mention 2 adv of opetating in a Mass market
ecos of scale
less risky–> business not dependant on upon smqaller segment
sakles revenue higher
mention 2 disadv of operating in a niche market
high compitition
ped
capital usually high –> expensive machinery –> may not sell all
mention 2 adv of operating in a niche markrt
price skimming–> can set a premium price
less competiton
mention 2 disadv of operating in a Mass market
- competiton high
- difficult to diferentuiate btw diff products and swevices
- PED
- expensive machinery
what does consmuer marketing incluide
1) Conveince products
purchased frequnelty–> bought on impulse + sold to larger market
2) Shopping products
requires market research+ planning by the customer before buying
not bought frequwently
3) SPECIALTY PRODUCTS
bought infrequnwtly bec expensie+ have strong brand loyalty
what does industrial marketing include
1) CAPITAL ITEMS
- machinery + vehicle + equipment
2) MATERIALS AND COMPONEMENTS
- that are needed for production to take place
3) SERVICES AND SUPPLIES
- business services and utilities
difference btw industrial and consumer marketing
- different prices
- diff amrketing fro B2B AND B2C
- diff packaging
- diff types of segmentation
- diff promotion
what does USP mean
unique seeling point
- special feature of a product that difereites it from competitors product
what are the benifits of USP
- effective way to distance a product or service from competitive rivals
- competitive ADV created
- fall in PED
- can charge high price due to exclusive design
- differentiated –> high sales –> high market share
- consumers attracted to EXSCLUVE SPECIAL DIFFERENT nature of product or service –> create brand loyalty + brand image
what is product differentiation
making a product distinctive so that it stands out from competitors’ product in CONSUMER PERCEPTION
define the term competitive adv
once there is gap in the market–> firms convince customer to buy their products
by doing this they will try to gain a competitive adv
esp where products are similar + identical
what are product differeintiation benifits
- if marketing concerned with strengthening product position in eyes of the customer –> PD Can become v Imp + profitable activity
- creates CA for sellers –> as customer views such products as Unique –> pulls customers away from competitor products
- premium product–> allowing premium price to be charged
-imp part of effective marketing strategy
mention the methods of gaining a competitive advantage
- good location
- value for money
- brand name
- customer service
- facilities
- image
what is social marketing
this approach considers not only demand of conumers
BUT
ALSO effects on all members of public socoerty in some way
mention 3 benifits of increased market share
- increased scale of operation –> thus ecos of scale
- increase in no of customers –> inc in sales
- bsuiness becomes moe powerful in the market –> can dictate prices
- retaliors eagar to stock that brand of goods –> prominnante sales position in retail outlets
what are the factors that rate of market growth depends on
- countrys rate of eco growth
- change in comsumer income
- change in consumer taste
– development of new markets + products –> leads to fall in sales of exisitng market and products - chang ein tech –> can boost market sales
