Section 3- Business Flashcards

Marketing

the process of identifying and predict to satisfies customer needs 🎯

The roles of marketing are

1. Identifying customer needs

2. Satisfying customer needs

3. Maintaining customer royalty

4. Building customer relationship

5. Predicting changes in customer needs 🤝

Reasons for spending changes

1. Change of the product price itself

2. Changes in the price of other competitors

3. Changes in the customer income

4. Changes in the population size + structure of the country/ market

5. Changes in tase and fashion Trend

6. Changes on cost of advertising and promotional campaigns 💸

Reasons for market competition

1. Government intervention

2. Regional free trade agreements -> Wider choice for consumer

3. Improvements in the infrastructure (e.g roas, rails, flights, transportation) -> Easier to transprts good -> increase competition

4. Development of ecommerce and social media networks 🌍

Business response to market changes

increasing competitiveness:

Developing new products

Take advantage of market research and higher quality manufacturing with USP

Increasing efficiency result in decrease of price, Increasing promotion -> Persuade customers to buy their products with USP, Expanding to new markets -> Looking for new market with less competition or more needs for the specific products 📈

Market share

the value of a business revenue as percentage to total market

Niche market

Where customer have specific needs and wants 🎯

Niche market Advantages

Increase royalty

meet consumer specific needs,

Less competition,

charge higher price -> higher profit margins ✅

Niche market Disadvantages

Could attract competitors into the market,

Unlikely to achieve EOS,

Over reliance on one product ❌

Mass Market

selling the same product to the whole market 🌍

Mass Market Advantages

Could reach EOS -> Reduce Avg cost,

Higher level of sales potential -> increase in revenue,

Higher brand awareness -> increase in market share & Revenue share ✅

Mass Market Disadvantages

Higher level of competition,

Products are standardised,

Require high levels of promotion ❌

Market segmentation

Dividing the market to different segments to tailor products that suits for that group of customers 🍕

Demographic segmentation

Age, income, location, gender, lifestyle 👥

Market segmentation Advantages

Meet specific needs of consumers -> Increase sales, Provide opportunity to develop brand loyalty, Promotion can be targeted -> Avoid waste,

Possible to charge higher prices (USP) ✅

Market segmentation Disadvantages

High promotional cost,

Risks is not spread too reliant on one market segments -> decrease in sales,

High cost of market research,

Product development cost ❌