Marketing

The role of marketing

• Identifying Customer needs

• Satisfying customer needs

• Anticipating changes in customer needs

• Maintaining Brand Loyalaty

• Maintaining Customer relationships

Why customer spending patterns may change

• Changes in prices of products

• Changes in prices of competitors of compeitors products

• Changes in income

• Changes in tastes and fashion

• Changes in promotion

• Changes in age structure and size of population

Why markets are becoming more competitive

• Goverment regulations

• Growth in free trade

• Increase in infrastructure

• Development of ecommerce

How businesses can respond to changing spending patterns and increased competition

• New products

• New markets

• Increased promotion

• Increased efficiency

Niche Markets

Markets that provide specialized products to small amount of people

Advantages

• Meet specific needs

• reduced competition

• Higher prices can be charged

Disadvantages

• High profits can bring in competitors

• Can not benefit from economies of scale

• Over reliance

Mass market

Market that provides products for the mass

Advantages

• Benefits from economies of scale

• High output

• High sales

Disadvantages

• More competitors

• Does not provide specialized products

• Needs more promotion

Market Segmentation

• Age

• Income

• Location

• Gender

• Lifestyle

Advantages

• Meets specifix needs

• Identify gaps in markets

• Better promotion

• Charge higher prices

Disadvantages

• Market research might be expensive

• Promtion is expensive

• Risk not spread

Primary Research Methods

• Questionarres and Surveys

• Interviews

• Focus Groups

• Observation

Advantages

• Can collect information relevant to the business

• Can collect new information

• Not available to competitors

Disadvantages

• Time consuming

• Expensive

• May include bias

Secondary Research

• Competitor Websites

• Market reports

• Goverment reports

• Trade magazine

Advantages

• Saves time

• Saves money

Disadvantages

• Not specific to business

• Not new info

Sampling

Targetting a small group of the market to determine data for the entire market

Accuracy of sampling

1. Size of sample

2. Secondary sample may be too old

3. There might be bias in the sample

4. May not understand questions