4.1 Introduction To Marketing

Market size

1. Volume of products bought in all firms in an industry in a given time period

2. Value of sales in all firms in an industry in a given time period

Market growth

The percentage change in sales (volume or value) over a selected period of time.

final - initial / initial x 100

What is market growth affcted by?

Economic growth

Change in taste

Nature of the product

Fashion

Market share equation

Total sales revenue of one firm

——————————————— x100

Total sales revenue of the market

Market Concentration

Total amount of market share of the top firms in the industry.

Market leader

Firm Who has the biggest market share in an industry

Marketing

Management role of predicting, identifying and meeting the needs and wants of customers in a profitable manner.

What can marketing be summed up as?

• Price

• Product

• Promotion

• Place

• People

• Physical Evidence

• Process

Market Orientation

An approach adopted by business that are outward looking. They focus on marketing products they can sell rather than selling products they can make comfortably.

Product Orientation

Marketing approach adopted by business that are inward looking. They focus on selling products that are easily/comfortable to make rather than making products they can sell.

Commercial Marketing

The use of marketing strategies to meet needs/wants of consumers in a profitable way.

Social Marketing

Planning and implementation of programs designed to bring about social change using concepts from commercial thinking - e.g.. smoking campagin etc.

What is the cycle of marketing planning process?

Marketing audit

Marketing objectives

Marketing strategies

Monitoring and Review

Evaluation

Market Segmentation

Division of the market into sub groups according to different factors.

Market segmentation - demographics

The division of the market into sub groups such as age, gender, ethnic origin, income e.t.c

Geographic Factors

Location , climate

Psychographic

Considers emotions and lifestyle of customers such as values, ethics, status, religion, culture

Market Segmentation Advantages

• Understanding of customers

• Higher sales

• Product differentiation

• Identification of opportunities

In the perception map what is high price and low quality?

Cowboy Brand

In the perception map what is high price and high quality?

Premium Brand

In the perception map what is low price and low quality?

Economy Brand

In the perception map what is high price and high quality?

Bargain Brand

Niche Marketing

Targeting of a specific and well definmed segment of the market.

Mass Marketing

A number of different market segments are communication to at the same time

Unique Selling Point

Any aspect of a product that makes it stand out in a positive way