4.1 The role of marketing

Segmentation

________: dividing a market into distinct groups of consumers who share common tastes and requirements.

Homogeneous products

________: goods that are physically identical or viewed as identical by consumers.

Ease of entry

________: lack of barriers for the establishment of new competitors in a market.

Marketing

management task that links the business to the customer by identifying and meeting the needs of customers profitably it does this by getting the right product at the right price to the right place at the right time

Market size

total level of sales of all producers within a market

Market growth

percentage change in the total size of a market (volume or value) over a period of time

Ease of entry

lack of barriers for the establishment of new competitors in a market

Homogeneous products

goods that are physically identical or viewed as identical by consumers

Segmentation

dividing a market into distinct groups of consumers who share common tastes and requirements

Target marketing

focusing marketing activity on particular segments of the market

Mass marketing

selling to the whole market using a standardized product and the same marketing activities

Consumer good

tangible physical product marketed to end users (consumers)

Consumer service

intangible provision of an activity to end users (consumers)

Market orientation

outward-looking approach basing product decisions on consumer demand, as established by market research

Product orientation

inward-looking approach that focuses on making products that can be made or have been made for a long time and then trying to sell them

Market share

percentage of sales in the total market sold by one business

Market leadership

when a business has the highest market share of all firms that operate in that market

Marketing objectives

goals set for the marketing department to help the business achieve its overall objectives

Marketing

Management task that links the business to the customer by identifying and meeting the needs of customers profitably it does this by getting the right product at the right price to the right place at the right time

Market research; distribution; product design; customer service; pricing; packaging; advertising

Marketing involves 7 related management functions

Market size

Total level of sales of all producers within a market

Market growth

Percentage change in the total size of a market (volume or value) over a period of time

Ease of entry

Lack of barriers for the establishment of new competitors in a market

Homogeneous products

Goods that are physically identical or viewed as identical by consumers

Segmentation

Dividing a market into distinct groups of consumers who share common tastes and requirements

Target marketing

Focusing marketing activity on particular segments of the market

Mass marketing

Selling to the whole market a using a standardized product and the same marketing activities

Consumer good

Tangible physical product marketed to end users (consumers)

Consumer service

Intangible provision of an activity to end users (consumers)

Market orientation

Outward-looking approach basing product decisions on consumer demand, as established by market research

Product orientation

Inward-looking approach that focuses on making products that can be made or have been made for a long time and then trying to sell them

Social (societal) marketing

Social (societal) marketing considers not only the demands of consumers but also the effects on all members of the public ("society") involved in some way when firms meet these demands

Market share

Percentage of sales in the total market sold by one business

Market leadership

When a business has the highest market share of all firms that operate in that market

Marketing objectives

Goals set for the marketing department to help the business achieve its overall objectives

Market research

Process of evaluating the feasibility of a new product/service, through research conducted directly with potential consumers. This method allows organizations/businesses to discover their target market, collect and document opinions and make informed decisions

Distribution

Spreading the product throughout the marketplace such that a large number of people can buy it

Product design

Process of imagining, creating and iterating products that solve users' problems or address specific needs in a given market

Customer service

Direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it

Pricing

Method of determining the value a producer will get in the exchange of goods/services. Simply, pricing method is used to set the price of producer's offerings relevant to both the producer and the customer

Packaging

Covering the product itself so that it is protected from damage, leakage, dust, pollution, contamination etc.

Advertising

Means of communication in which a product, brand or service is promoted to a viewership in order to attract interest, engagement and sales