BME - Marketing

Market

the point of interaction between buyers and sellers

Marketing

the process by which needs are identified and eventually satisfied. It involves the promotion of a business or its products/services with the goal to increase sales and hopefully increase profit

Market size

the number of potential customers or total revenue in a certain market. It measure the total demand for a certain product or service.

Market share

the percentage of the market that is obtained by a particular company over a specified time period.

Market position

how a business wants its customers to think about the products or services.

helps a business focus its marketing efforts by showing what the business does and why it is different from its competitors.

Competitor analysis

requires businesses to gather information about competitors producing similar goods or services

Target market

a group of potential customers that the business has identified to sell products or services to.

Demographic (Market Segmentation)

The specific characteristics of a population, the structure of populations and the different groups within them.

·        Income

·        Sex

·        Age

·        Education

·        Occupation

·        Nationality

Geographic (Market segmentation)

Used to target products or services at people who live in, or shop at, a particular location

·        Country

·        State

·        Rural/urban

·        Climate

Population size

Psychographic (Market Segmentaion)

A method to understand people based on their attitudes, beliefs, interests, and lifestyle choices

§  Opinions

§  Personality

§  Attitude

§  Interest

§  Leisure activities

§  Beliefs

Primary data

original data that has been collected specifically for a purpose in mind. Eg survey, questionnaire

Secondary data

data that have been already collected by and readily available from other sources.

Marketing goals

Measurable goals the business wants to achieve as a result of a marketing campaign. Eg increase sales or revenue, attract customers in a new market segment

Marketing strategy key features (3)

Brand: how customers should feel about the business

Segment: which market or group of customers the business will sell to

Positioning: how the business wants to be perceived in the mind of the customer. 

Elements of the marketing mix

Product

• Positioning

• features

• branding

• packaging

Price

• Skim -

  • Charge an initial high price, then gradually reduce to appeal to more markets

• penetration -

  •  garner lots of customers with low prices and then use various marketing strategies to retain them.

• psychological - eg $9.99

• premium/prestige - keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price and image/social status

Place

• direct distribution

• indirect distribution

• location (where the customer can find the product)

Promotion

• advertising

• publicity

• sales promotion

• personal selling

• viral marketing (online)

People (employees)

• Training and customer service as part of customer relationship management (CRM)

Processes

Procedures to deliver a service or product

Physical Presence

• signage

• webpage

• staff uniform

Performance

Evaluation of business marketing objectives using KPI, including revenue, returns and customer satisfaction

Customer satisfaction strategies

• customer loyalty

• early adopter incentive

customer loyalty

a person's willingness to buy from a brand repeatedly. achieved by the effective implementation of the eight P’s

early adopter incentive

the first to use the product as soon as it becomes available. May be an incentive for customers who have passion for what’s in trend. A company will create hype around the launch of the product A pre-order program is useful to give the company a lot of data on their potential customer base.